II 

110TH CONGRESS 

1ST SESSION S. 1124 

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 

APRIL 17, 2007 

Mr. LEVIN (for himself and Mr. COLEMAN) 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; AMENDMENT OF 1986 CODE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Tax Lien Simplification Act’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amendVerDate Aug 31 2005 03:33 Apr 19, 2007 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1124.IS S1124

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1 ment or repeal is expressed in terms of an amendment 

2 to, or repeal of, a section or other provision, the reference 

3 shall be considered to be made to a section or other provi4 sion of the Internal Revenue Code of 1986. 

5 SEC. 2. FINDINGS AND PURPOSE. 

6 (a) FINDINGS.—Congress makes the following find7 ings: 

8 (1) The present decentralized system for filing 

9 Federal tax liens in local property offices, which was 

10 established before the advent of modern computers, 

11 the Internet, and e-government programs, is ineffi12 cient, burdensome, and expensive. 

13 (2) Current technology permits the creation of 

14 a centralized Federal tax lien filing system which 

15 can provide for enhanced public notice of and access 

16 to accurate tax lien information in a manner that is 

17 more efficient, more timely, and less burdensome 

18 than the existing tax lien filing system; which would 

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

20 expensive for both taxpayers and users. 

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

22 and modernize the process for filing notices of Federal tax 

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

24 to save taxpayer dollars by establishing a nationwide, 

25 Internet accessible, and fully searchable filing system for 


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1 Federal tax liens which would replace the current system 

2 of local tax lien filings. 

3 SEC. 3. NATIONAL TAX LIEN FILING SYSTEM. 

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

5 section 6323 (relating to validity and priority against cer6 tain persons) is amended to read as follows: 

7 ‘‘(f) FILING OF NOTICE; FORM.— 

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

9 to in subsection (a) shall be filed in the national 

10 Federal tax lien registry established under sub11 section (k). The filing of a notice of lien, or a certifi12 cate of release, discharge, subordination, or non13 attachment of lien, in the national Federal tax lien 

14 registry shall be effective for purposes of deter15 mining lien priority regardless of the nature or loca16 tion of the property interest to which the lien at17 taches. 

18 ‘‘(2) FORM.—The form and content of the no19 tice referred to in subsection (a) shall be prescribed 

20 by the Secretary. Such notice shall be valid notwith21 standing any other provision of law regarding the 

22 form or content of a notice of lien. 

23 ‘‘(3) OTHER NATIONAL FILING SYSTEMS.—The 

24 filing of a notice of lien shall be governed by this 

25 title and shall not be subject to any other Federal 


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1 law establishing a place or places for the filing of 

2 liens or encumbrances under a national filing sys3 tem.’’. 

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

5 6323(g) (relating to refiling of notice) is amended to read 

6 as follows: 

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

8 in the national Federal tax lien registry established 

9 under subsection (k).’’. 

10 (c) RELEASE OF TAX LIENS OR DISCHARGE OF

11 PROPERTY.— 

12 (1) IN GENERAL.—Section 6325(a) (relating to 

13 release of lien) is amended by inserting ‘‘, and shall 

14 cause the certificate of release to be filed in the na15 tional Federal tax lien registry established under 

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

17 (2) RELEASE OF TAX LIENS EXPEDITED FROM

18 30 TO 10 DAYS.—Section 6325(a) (relating to release 

19 of lien) is amended by striking ‘‘not later than 30 

20 days’’ and inserting ‘‘not later than 10 days’’. 

21 (3) DISCHARGE OF PROPERTY FROM LIEN.— 

22 Section 6325(b) (relating to discharge of property) 

23 is amended— 

24 (A) by inserting ‘‘, and shall cause the cer25 tificate of discharge to be filed in the national 


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1 Federal tax lien registry established under sec2 tion 6323(k),’’ after ‘‘under this chapter’’ in 

3 paragraph (1), 

4 (B) by inserting ‘‘, and shall cause the cer5 tificate of discharge to be filed in such national 

6 Federal tax lien registry,’’ after ‘‘property sub7 ject to the lien’’ in paragraph (2), 

8 (C) by inserting ‘‘, and shall cause the cer9 tificate of discharge to be filed in such national 

10 Federal tax lien registry,’’ after ‘‘property sub11 ject to the lien’’ in paragraph (3), and 

12 (D) by inserting ‘‘, and shall cause the cer13 tificate of discharge of property to be filed in 

14 such national Federal tax lien registry,’’ after 

15 ‘‘certificate of discharge of such property’’ in 

16 paragraph (4). 

17 (4) DISCHARGE OF PROPERTY FROM ESTATE

18 OR GIFT TAX LIEN.—Section 6325(c) (relating to es19 tate or gift tax) is amended by inserting ‘‘, and shall 

20 cause the certificate of discharge to be filed in the 

21 national Federal tax lien registry established under 

22 section 6323(k),’’ after ‘‘imposed by section 6324’’. 

23 (5) SUBORDINATION OF LIEN.—Section 

24 6325(d) (relating to subordination of lien) is amend25 ed by inserting ‘‘, and shall cause the certificate of 


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1 subordination to be filed in the national Federal tax 

2 lien registry established under section 6323(k),’’ 

3 after ‘‘subject to such lien’’. 

4 (6) NONATTACHMENT OF LIEN.—Section 

5 6325(e) (relating to nonattachment of lien) is 

6 amended by inserting ‘‘, and shall cause the certifi7 cate of nonattachment to be filed in the national 

8 Federal tax lien registry established under section 

9 6323(k),’’ after ‘‘property of such person’’. 

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

11 and (2)(B) of section 6325(f) (relating to effect of 

12 certificate) are each amended by striking ‘‘in the 

13 same office as the notice of lien to which it relates 

14 is filed (if such notice of lien has been filed)’’ and 

15 inserting ‘‘in the national Federal tax lien registry 

16 established under section 6323(k)’’. 

17 (8) RELEASE FOLLOWING ADMINISTRATIVE AP18 PEAL.—Section 6326(b) (relating to certificate of re19 lease) is amended— 

20 (A) by striking ‘‘and shall include’’ and in21 sert ‘‘, shall include’’, and 

22 (B) by inserting ‘‘, and shall cause the cer23 tificate of release to be filed in the national 

24 Federal tax lien registry established under sec25 tion 6323(k),’’ after ‘‘erroneous’’. 


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1 (9) CONFORMING AMENDMENTS.—Section 6325 

2 is amended by striking subsection (g) and by redes3 ignating subsection (h) as subsection (g). 

4 (d) NATIONAL FEDERAL TAX LIEN REGISTRY.— 

5 (1) IN GENERAL.—Section 6323 is amended by 

6 adding at the end the following new subsection: 

7 ‘‘(k) NATIONAL REGISTRY.—The national Federal 

8 tax lien registry referred to in subsection (f)(1) shall be 

9 established and maintained by the Secretary and shall be 

10 accessible to and searchable by the public through the 

11 Internet at no cost to access or search. The registry shall 

12 identify the taxpayer to whom the Federal tax lien applies 

13 and reflect the date and time the notice of lien was filed, 

14 and shall be made searchable by, at a minimum, taxpayer 

15 name, the State of the taxpayer’s address as shown on 

16 the notice of lien, the type of tax, and the tax period, and, 

17 when the Secretary determines it is feasible, by property. 

18 The registry shall also provide for the filing of certificates 

19 of release, discharge, subordination, and nonattachment of 

20 Federal tax liens, as authorized in sections 6325 and 

21 6326, and may provide for publishing such other docu22 ments or information with respect to Federal tax liens as 

23 the Secretary may by regulation provide.’’. 

24 (2) ADMINISTRATIVE ACTION.—The Secretary 

25 of the Treasury shall issue regulations or other guidVerDate Aug 31 2005 03:33 Apr 19, 2007 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1124.IS S1124

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1 ance providing for the maintenance and use of the 

2 national Federal tax lien registry established under 

3 section 6323(k) of the Internal Revenue Code of 

4 1986. The Secretary of the Treasury shall take ap5 propriate steps to secure and prevent tampering with 

6 the data recorded therein. Prior to implementation 

7 of such registry, the Secretary of the Treasury shall 

8 review the information currently provided in public 

9 lien filings and determine whether any such informa10 tion should be excluded or protected from public 

11 viewing in such registry. 

12 (e) TRANSITION RULES.—The Secretary of the 

13 Treasury may by regulation prescribe for the continued 

14 filing of notices of Federal tax lien in the offices of the 

15 States, counties and other governmental subdivisions after 

16 December 31, 2008, for an appropriate period to permit 

17 an orderly transition to the national Federal tax lien reg18 istry established under section 6323(k) of the Internal 

19 Revenue Code of 1986. 

20 (f) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to notices of lien filed after Decem22 ber 31, 2008. The national Federal tax lien registry (es23 tablished under section 6323(k) of the Internal Revenue 

24 Code of 1986) shall be made operational as of January 


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1 1, 2009, whether or not the Secretary of the Treasury has 

2 promulgated final regulations establishing such registry. 

Æ 


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