[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6326-1]

[Page 266-267]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Collection
 
Sec. 301.6326-1  Administrative appeal of the erroneous filing of notice 
of federal tax lien.

    (a) In general. Any person may appeal to the district director of 
the district in which a notice of federal tax lien was filed on the 
property or rights to property of such person for a release of lien 
alleging an error in the filing of notice of lien. Such appeal may be 
used only for the purpose of correcting the erroneous filing of a notice 
of lien, not to challenge the underlying deficiency that led to the 
imposition of a lien. If the district director determines that the 
Internal Revenue Service has erroneously filed the notice of any federal 
tax lien, the district director shall expeditiously, and, to the extent 
practicable, within 14 days after such determination, issue a 
certificate of release of lien. The certificate of release of such lien 
shall include a statement that the filing of notice of lien was 
erroneous.
    (b) Appeal alleging an error in the filing of notice of lien. For 
purposes of paragraph (a) of this section, an appeal of the filing of 
notice of federal tax lien must be based on any one of the following 
allegations:
    (1) The tax liability that gave rise to the lien, plus any interest 
and additions to tax associated with said liability, was satisfied prior 
to the filing of notice of lien;
    (2) The tax liability that gave rise to the lien was assessed in 
violation of the deficiency procedures set forth in section 6213 of the 
Internal Revenue Code;
    (3) The tax liability that gave rise to the lien was assessed in 
violation of title 11 of the United States Code (the Bankruptcy Code); 
or
    (4) The statutory period for collection of the tax liability that 
gave rise

[[Page 267]]

to the lien expired prior to the filing of notice of federal tax lien.
    (c) Notice of federal tax lien that lists multiple liabilities. When 
a notice of federal tax lien lists multiple liabilities, a person may 
appeal the filing of notice of lien with respect to one or more of the 
liabilities listed in the notice, if the notice was erroneously filed 
with respect to such liabilities. If a notice of federal tax lien was 
erroneously filed with respect to one or more liabilities listed in the 
notice, the district director shall issue a certificate of release with 
respect to such liabilities. For example, if a notice of federal tax 
lien lists tax liabilities for years 1980, 1981 and 1982, and the entire 
liabilities for 1981 and 1982 were paid prior to the filing of notice of 
lien, the taxpayer may appeal the filing of notice of lien with respect 
to the 1981 and 1982 liabilities and the district director must issue a 
certificate of release with respect to the 1981 and 1982 liabilities.
    (d) Procedures for appeal--(1) Manner. An appeal of the filing of 
notice of federal tax lien shall be made in writing to the district 
director (marked for the attention of the Chief, Special Procedures 
Function) of the district in which the notice of federal tax lien was 
filed.
    (2) Form. The appeal shall include the following information and 
documents:
    (i) Name, current address, and taxpayer identification number of the 
person appealing the filing of notice of federal tax lien;
    (ii) A copy of the notice of federal tax lien affecting the 
property, if available; and
    (iii) The grounds upon which the filing of notice of federal tax 
lien is being appealed.
    (A) If the ground upon which the filing of notice is being appealed 
is that the tax liability in question was satisfied prior to the filing, 
proof of full payment as defined in paragraph (e) of this section must 
be provided.
    (B) If the ground upon which the filing of notice is being appealed 
is that the tax liability that gave rise to lien was assessed in 
violation of the deficiency procedures set forth in section 6213 of the 
Internal Revenue Code, the appealing party must explain how the 
assessment was erroneous.
    (C) If the ground upon which the filing of notice is being appealed 
is that the tax liability that gave rise to the lien was assessed in 
violation of title 11 of the United States Code (the Bankruptcy Code), 
the appealing party must provide the following:
    (1) The identity of the court and the district in which the 
bankruptcy petition was filed; and
    (2) The docket number and the date of filing of the bankruptcy 
petition.
    (3) Time. An administrative appeal of the erroneous filing of notice 
of federal tax lien shall be made within 1 year after the taxpayer 
becomes aware of the erroneously filed tax lien.
    (e) Proof of full payment. As used in paragraph (d)(2)(iii) of this 
section, the term ``proof of full payment'' means:
    (1) An internal revenue cashier's receipt reflecting full payment of 
the tax liability in question prior to the date the federal tax lien 
issue was filed;
    (2) A canceled check to the Internal Revenue Service in an amount 
which was sufficient to satisfy the tax liability for which release is 
being sought; or
    (3) Any other manner of proof acceptable to the district director.
    (f) Exclusive remedy. The appeal established by section 6326 of the 
Internal Revenue Code and by this section shall be the exclusive 
administrative remedy with respect to the erroneous filing of a notice 
of federal tax lien.
    (g) Effective date. The provisions of this section are effective 
July 7, 1989.

[T.D. 8250, 54 FR 19569, May 8, 1989. Redesignated at 56 FR 19948, May 
1, 1991]