I 

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. 

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 Act may be cited as the ‘‘Targeted Tax Lien 

5 Act of 2010’’. 


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1 SEC. 2. MODIFICATIONS TO LIEN NOTICE FILING PROCE2 DURES. 

3 (a) IN GENERAL.—Section 6323 of the Internal Rev4 enue Code of 1986 (relating to validity and priority of tax 

5 liens against certain persons) is amended by adding at the 

6 end the following new subsection: 

7 ‘‘(k) REQUIRED PROCEDURES BEFORE FILING NO8 TICE OF LIEN.— 

9 ‘‘(1) SECRETARIAL DETERMINATION.— 

10 ‘‘(A) IN GENERAL.—The Secretary may 

11 not file a notice of lien with respect to any tax12 payer unless— 

13 ‘‘(i) the lien attaches to distrainable 

14 property, and 

15 ‘‘(ii) weighing all facts and cir16 cumstances pertaining to the collection of 

17 a taxpayer’s delinquent tax assessment, the 

18 Secretary determines that— 

19 ‘‘(I) the benefit to the Federal 

20 Government of the filing outweighs 

21 the harm to the taxpayer, and 

22 ‘‘(II) the filing will not jeopardize 

23 the taxpayer’s prospective ability— 

24 ‘‘(aa) to comply with the in25 ternal revenue laws, and 


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1 ‘‘(bb) if the taxpayer is an 

2 otherwise viable business tax3 payer, to continue to secure fund4 ing to maintain business oper5 ations. 

6 ‘‘(B) FACTORS TO CONSIDER.—In making 

7 the determination under subparagraph (A)(ii), 

8 the Secretary shall consider— 

9 ‘‘(i) the amount due, 

10 ‘‘(ii) the lien filing fee, 

11 ‘‘(iii) the value of the taxpayer’s eq12 uity in the property or rights to property, 

13 ‘‘(iv) the taxpayer’s tax compliance 

14 history, 

15 ‘‘(v) extenuating circumstances, if 

16 any, that explain the delinquency, and 

17 ‘‘(vi) the effect of the filing on the 

18 taxpayer’s ability to obtain financing, gen19 erate future income, and pay current and 

20 future tax liabilities. 

21 ‘‘(2) TAXPAYER APPEAL PRIOR TO FILING.— 

22 The Secretary may not file a notice of lien with re23 spect to any taxpayer unless— 


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1 ‘‘(A) the Secretary notifies the taxpayer 

2 that the Secretary has determined to file such 

3 a notice with respect to the taxpayer, and 

4 ‘‘(B) the taxpayer is afforded an oppor5 tunity to appeal such determination to the In6 ternal Revenue Service Office of Appeals. 

7 The Secretary shall make reasonable efforts to pro8 vide the notice under subparagraph (A) by telephone 

9 or direct personal contact. 

10 ‘‘(3) SUPERVISORY APPROVAL REQUIRED FOR

11 LIENS IN CERTAIN CASES.— 

12 ‘‘(A) IN GENERAL.—In any case to which 

13 this paragraph applies, a notice of lien may not 

14 be filed unless the immediate supervisor (or 

15 such higher level official as the Secretary may 

16 designate) of the individual making the initial 

17 determination under paragraph (1) has individ18 ually reviewed and approved such determina19 tion. 

20 ‘‘(B) CASES TO WHICH PARAGRAPH AP21 PLIES.—This paragraph shall apply in any case 

22 in which— 

23 ‘‘(i) the collection of the liability 

24 would create an economic hardship within 

25 the meaning of section 6343(a)(1)(D), 


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1 ‘‘(ii) the taxpayer has no equity in as2 sets, or 

3 ‘‘(iii) there has been no personal con4 tact with the taxpayer to discuss collection 

5 alternatives, including an offer in com6 promise and partial payment installment 

7 agreement.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall take effect on the date of the enactment 

10 of this Act. 

11 SEC. 3. MODIFICATION OF REQUIREMENTS RELATING TO 

12 TAX LIEN INFORMATION CONTAINED IN CON13 SUMER CREDIT REPORTS. 

14 (a) IN GENERAL.—Paragraph (3) of section 605(a) 

15 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(3)) 

16 (relating to information contained in consumer reports) is 

17 amended to read as follows: 

18 ‘‘(3) TAX LIENS.—The following tax liens: 

19 ‘‘(A) Any tax lien released pursuant to sec20 tion 6325(a) of the Internal Revenue Code of 

21 1986 not more than 2 years after the date that 

22 the notice of such lien was filed. 

23 ‘‘(B) Any tax lien released pursuant to sec24 tion 6325(a) of such Code— 


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1 ‘‘(i) more than 2 years after the date 

2 that the notice of such lien was filed, and 

3 ‘‘(ii) more than 2 years before the re4 port. 

5 ‘‘(C) Any tax lien if— 

6 ‘‘(i) the notice of such lien was not 

7 refiled during the required refiling period 

8 (as defined in section 6325(g)(3) of such 

9 Code), and 

10 ‘‘(ii) such period ends more than 6 

11 years before the report. 

12 ‘‘(D) Any tax lien the notice of which is 

13 withdrawn pursuant to section 6323(j)(1) of 

14 such Code. 

15 ‘‘(E) Any tax lien released pursuant to sec16 tion 6326(b) of such Code if the notice of such 

17 lien was erroneously filed.’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall take effect on the date of the enactment 

20 of this Act. 

Æ 


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