§ 7429. Review of jeopardy levy or assessment procedures

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1976

   Pub. L. 94–455 title XII § 1204(a) · 90 Stat. 1520

   Enacted · 26 U.S.C. § 7429

   Added Pub. L. 94–455, title XII, § 1204(a), Oct. 4, 1976, 90 Stat. 1695

   Source evidence

   Code source credit
   Added Pub. L. 94–455, title XII, § 1204(a), Oct. 4, 1976, 90 Stat. 1695

   Enacted provision · exact public law section
   (a) Review of Jeopardy and Termination Assessments.— Subchapter B of chapter 76 (relating to proceedings by taxpayers and third parties) is amended by inserting after section 7488 the following new section: “(a) Administrative Review.— “(1) Information to taxpayer.— Within 5 days after the day on which an assessment is made under section 6851(a), 6861(a), or 6862, the Secretary shall provide the taxpayer with a written statement of the information upon which the Secretary relies in making such assessment. “(2) Request for review.— Within 30 days after the day on which the taxpayer is furnished the written statement described in paragraph (1), or within 30 days after the last day of the period within which such statement is required to be furnished, the tax-payer may request the Secretary to review the action taken, “(3) Redetermination by secretary.— After a request for review is made under paragraph (2), the Secretary shall determine whether or not— “(A) the making of the assessment under section 6851, 6861, or 6862, as the ease may be, is reasonable under the circumstances, and “(B) the amount so assessed or demanded as a result of the action taken under section 6851, 6861. or 6862 is appropriate under the circumstances. “(b) Judicial Review.— “(1) Actions permitted.— Within 30 days after the earlier of— “(A) the day the Secretary notifies the taxpayer of his determination described in subsection (a)(8), or “(B) the 16th day after the request, described in subsection (a)(2) was made, the taxpayer may bring a civil action against the United States in a district court of the United States for a determination under this subsection. “(2) Determination by district court.— Within 20 days after an action is commenced under paragraph (1), the district court shall determine whether or not— “(A) the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and “(B) the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862, is appropriate under the circumstances. “(3) Order of district court.— If the court determines that the making of such assessment is unreasonable or that the amount assessed or demanded is inappropriate, the court may order the Secretary to abate such assessment, to redetermine (in whole or in part) the amount assessed or demanded, or to take such other action as the court finds appropriate. “(c) Extension of 20-Day Period Where Taxpayer So Requests.— If the taxpayer requests an extension of the 20day period set forth in subsection (b)(2) and establishes reasonable grounds why such extension should be granted, the district court may grant an extension of not more than 40 additional days. “(d) Computation of Days.— For purposes of this section, Saturday, Sunday, or a legal holiday in the District of Columbia shall not be counted as the, last day of any period. “(e) Venue.— A civil action under subsection (b) shall be commenced only hi the judicial district described in section 1402(a)(1) or (2) of title 28, United States Code. “(f) Finality of Determination.— Any determination made by a district court under this section shall be final and conclusive and shall not be reviewed by any other court. “(g) Burden of Proof.— “(1) Reasonableness of termination or jeopardy assessment.— In an action under subsection (b) involving the issue of whether the making of an assessment under section 6851, 6861, or 6862 is reasonable under the circumstances, the burden of proof in respect to such issue shall be upon the Secretary. “(2) Reasonableness of amount of assessment.— In an action under subsection (b) involving the issue of whether an amount assessed or demanded as a result of action taken under section 6851, 6861, or 6862 is appropriate under the circumstances, the Secretary shall provide a written statement which contains any information with respect to which his determination of the amount assessed was based, but the burden of proof in respect of such issue shall be upon the taxpayer.”

2. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 div. A title IV § 446(a) · 98 Stat. 494

   Inserted · 26 U.S.C. § 7429(b)(2)

   Pub. L. 98–369 inserted provision that if the court determines that proper service was not made on the United States within 5 days after the date of the commencement of the action, the running of the 20-day period shall not begin before the day on which proper service was made on the United States

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 98–369 inserted provision that if the court determines that proper service was not made on the United States within 5 days after the date of the commencement of the action, the running of the 20-day period shall not begin before the day on which proper service was made on the United States.

   Enacted provision · exact public law section
   (a) General Rule.— Paragraph (2) of section 7429(b) (relating to 26 USC 7429. judicial review) is amended by adding at the end thereof the following new sentence: “If the court determines that proper service was not made on the United States within 5 days after the date of the commencement of the action, the running of the 20-day period set forth in the preceding sentence shall not begin before the day on which proper service was made on the United States.”

3. 1987

   Pub. L. 100–203 § 10713(b)(2)(F)(i) · 101 Stat. 1330

   Substituted · 26 U.S.C. § 7429(a)(1)

   Pub. L. 100–203, § 10713(b)(2)(F)(i), substituted “6851(a), 6852(a)” for “6851(a),”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 100–203, § 10713(b)(2)(F)(i), substituted “6851(a), 6852(a)” for “6851(a),”.

   Enacted provision · exact public law section
   (i) by striking out “6851(a),” each place it appears and inserting in lieu thereof “6851(a), 6852(a),”, and

4. 1987

   Pub. L. 100–203 § 10713(b)(2)(F)(ii) · 101 Stat. 1330

   Substituted · 26 U.S.C. § 7429(a)(3)(A); 26 U.S.C. § 7429(a)(3)(B); 26 U.S.C. § 7429(b)(2)(A); 26 U.S.C. § 7429(a)(3)(B); 26 U.S.C. § 7429(a)(g)(1); 26 U.S.C. § 7429(a)(3)(2)

   Pub. L. 100–203, § 10713(b)(2)(F)(ii), substituted “6851, 6852,” for “6851,” wherever appearing

   Source evidence

   Code amendment note
   Subsecs. (a)(3)(A), (B), (b)(2)(A), (B), (g)(1), (2). Pub. L. 100–203, § 10713(b)(2)(F)(ii), substituted “6851, 6852,” for “6851,” wherever appearing.

   Enacted provision · exact public law section
   (ii) by striking out “6851,” each place it appears and inserting in lieu thereof “6851, 6852,”.

5. 1988

   Omnibus Taxpayer Bill of Rights

   Pub. L. 100–647 § 6237(e)(3) · 102 Stat. 3342

   Inserted · 26 U.S.C. § 7429

   Pub. L. 100–647, § 6237(e)(3), inserted “levy or” after “jeopardy” in section catchline

   Source evidence

   Code amendment note
   Pub. L. 100–647, § 6237(e)(3), inserted “levy or” after “jeopardy” in section catchline.

   Enacted provision · exact public law section
   (3) The heading of section 7429 of the 1986 Code is amended by inserting “LEVY OR” after “JEOPARDY”.

6. 1988

   Omnibus Taxpayer Bill of Rights

   Pub. L. 100–647 § 6237(a) · 102 Stat. 3342

   Inserted · 26 U.S.C. § 7429(a)(1)

   Pub. L. 100–647, § 6237(a), inserted “or levy is made under section 6331(a) less than 30 days after notice and demand for payment is made under section 6331(a),” after “6862,” and “or levy” after “such assessment”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 100–647, § 6237(a), inserted “or levy is made under section 6331(a) less than 30 days after notice and demand for payment is made under section 6331(a),” after “6862,” and “or levy” after “such assessment”.

   Enacted provision · exact public law section
   (a) In General.— Subsection (a)(1) of section 7429 of the 1986 Code (relating to review of jeopardy assessment procedures) is amended— (1) by inserting “or levy is made under section 6331(a) less than 30 days after notice and demand for payment is made under section 6331(a),” after “6862,”, and (2) by inserting “or levy” after “such assessment”.

7. 1988

   Omnibus Taxpayer Bill of Rights

   Pub. L. 100–647 § 6237(b) · 102 Stat. 3342

   Amended · 26 U.S.C. § 7429(a)(3)

   Pub. L. 100–647, § 6237(b), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “After a request for review is made under paragraph (2), the Secretary shall determine whether or not—

   Source evidence

   Code amendment note
   Subsec. (a)(3). Pub. L. 100–647, § 6237(b), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “After a request for review is made under paragraph (2), the Secretary shall determine whether or not—

   “(A) the making of the assessment under section 6851, 6852, 6861, or 6862, as the case may be, is reasonable under the circumstances, and “(B) the amount so assessed or demanded as a result of the action taken under section 6851, 6852, 6861, or 6862 is appropriate under the circumstances.”

   Enacted provision · exact public law section
   (b) Administrative Determinations.— Paragraph (3) of section 7429(a) of the 1986 Code (relating to redetermination by the Secretary) is amended to read as follows: “(3) Redetermination by secretary.— After a request for review is made under paragraph (2), the Secretary shall determine— “(A) whether or not— “(i) the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and “(ii) the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862 is appropriate under the circumstances, or “(B) whether or not the levy described in subsection (a)(1) is reasonable under the circumstances.”

8. 1988

   Omnibus Taxpayer Bill of Rights

   Pub. L. 100–647 § 6237(c) · 102 Stat. 3342

   1. Amended · 26 U.S.C. § 7429(b)

      Pub. L. 100–647, § 6237(c), amended subsec. (b) generally

   2. Substituted · 26 U.S.C. § 7429(b)

      Pub. L. 100–647, § 6237(c), substituting provisions of pars. (1) to (4) for provisions of former pars. (1) to (3) relating to actions permitted, determination by district court, and order of district court

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 100–647, § 6237(c), amended subsec. (b) generally, substituting provisions of pars. (1) to (4) for provisions of former pars. (1) to (3) relating to actions permitted, determination by district court, and order of district court.

   Enacted provision · exact public law section
   (c) Tax Court Review Jurisdiction.— Subsection (b) of section 7429 of the 1986 Code is amended to read as follows: “(b) Judicial Review.— “(1) Proceedings permitted.— Within 90 days after the earlier of— “(A) the day the Secretary notifies the taxpayer of the Secretary’s determination described in subsection (a)(3), or “(B) the 16th day after the request described in subsection (a)(2) was made, the taxpayer may bring a civil action against the United States for a determination under this subsection in the court with jurisdiction determined under paragraph (2). “(2) Jurisdiction for determination.— “(A) In general.— Except as provided in subparagraph (B), the district courts of the United States shall have exclusive jurisdiction over any civil action for a determination under this subsection. “(B) Tax court.— If a petition for a redetermination of a deficiency under section 6213(a) has been timely filed with the Tax Court before the making of an assessment or levy that is subject to the review procedures of this section, and 1 or more of the taxes and taxable periods before the Tax Court because of such petition is also included in the written statement that is provided to the taxpayer under subsection (a), then the Tax Court also shall have jurisdiction over any civil action for a determination under this subsection with respect to all the taxes and taxable periods included in such written statement. “(3) Determination by court.— Within 20 days after a proceeding is commenced under paragraph (1), the court shall determine— “(A) whether or not— “(i) the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and “(ii) the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862 is appropriate under the circumstances, or “(B) whether or not the levy described in subsection (a)(1) is reasonable under the circumstances. If the court determines that proper service was not made on the United States or on the Secretary, as may be appropriate, within 5 days after the date of the commencement of the proceeding, then the running of the 20-day period set forth in the preceding sentence shall not begin before the day on which proper service was made on the United States or on the Secretary, as may be appropriate. “(4) Order of court.— If the court determines that the making of such levy is unreasonable, that the making of such assessment is unreasonable, or that the amount assessed or demanded is inappropriate, then the court may order the Secretary to release such levy, to abate such assessment, to redetermine (in whole or in part) the amount assessed or demanded, or to take such other action as the court finds appropriate.”

9. 1988

   Omnibus Taxpayer Bill of Rights

   Pub. L. 100–647 § 6237(e)(1) · 102 Stat. 3342

   Struck · 26 U.S.C. § 7429(c)

   Pub. L. 100–647, § 6237(e)(1), struck out “district” before “court”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 100–647, § 6237(e)(1), struck out “district” before “court”.

   Enacted provision · exact public law section
   (1) Section 7429(c) of the 1986 Code (relating to extension of 20-day period where taxpayer so requests) and section 7429(f) (relating to finality of determination) are amended by striking out “district” each place it appears.

10. 1988

    Omnibus Taxpayer Bill of Rights

    Pub. L. 100–647 § 6237(d) · 102 Stat. 3342

    Amended · 26 U.S.C. § 7429(e)

    Pub. L. 100–647, § 6237(d), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “A civil action under subsection (b) shall be commenced only in the judicial district described in section 1402(a)(1) or (2) of title 28, United States Code.”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 100–647, § 6237(d), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “A civil action under subsection (b) shall be commenced only in the judicial district described in section 1402(a)(1) or (2) of title 28, United States Code.”

    Enacted provision · exact public law section
    (d) Venue.— Section 7429(e) of the 1986 Code (relating to venue) is amended to read as follows: “(e) Venue.— “(1) District court.— A civil action in a district court under subsection (b) shall be commenced only in the judicial district described in section 1402(a) (1) or (2) of title 28, United States Code. “(2) Transfer of actions.— If a civil action is filed under subsection (b) with the Tax Court and such court finds that there is want of jurisdiction because of the jurisdiction provisions of subsection (b)(2), then the Tax Court shall, if such court determines it is in the interest of justice, transfer the civil action to the district court in which the action could have been brought at the time such action was filed. Any civil action so transferred shall proceed as if such action had been filed in the district court to which such action is transferred on the date on which such action was actually filed in the Tax Court from which such action is transferred.”

11. 1988

    Omnibus Taxpayer Bill of Rights

    Pub. L. 100–647 § 6237(e)(1) · 102 Stat. 3342

    Struck · 26 U.S.C. § 7429(f)

    Pub. L. 100–647, § 6237(e)(1), struck out “district” after “made by a”

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 100–647, § 6237(e)(1), struck out “district” after “made by a”.

    Enacted provision · exact public law section
    (1) Section 7429(c) of the 1986 Code (relating to extension of 20-day period where taxpayer so requests) and section 7429(f) (relating to finality of determination) are amended by striking out “district” each place it appears.

12. 1988

    Omnibus Taxpayer Bill of Rights

    Pub. L. 100–647 § 6237(e)(2) · 102 Stat. 3342

    1. Substituted · 26 U.S.C. § 7429(g)(1)

       Pub. L. 100–647, § 6237(e)(2), in heading substituted “levy, termination,” for “termination”

    2. Substituted · 26 U.S.C. § 7429(g)(1)

       Pub. L. 100–647, § 6237(e)(2), in heading substituted “a proceeding” for “an action”

    3. Inserted · 26 U.S.C. § 7429(g)(1)

       Pub. L. 100–647, § 6237(e)(2), in heading inserted “the making of a levy described in subsection (a)(1) or” after “whether”

    Source evidence

    Code amendment note
    Subsec. (g)(1). Pub. L. 100–647, § 6237(e)(2), in heading substituted “levy, termination,” for “termination” and in text substituted “a proceeding” for “an action” and inserted “the making of a levy described in subsection (a)(1) or” after “whether”.

    Enacted provision · exact public law section
    (2) Section 7429(g) of the 1986 Code (relating to burden of proof) is amended— (A) by inserting “the making of a levy described in subsection (a)(1) or” after “whether” in paragraph (1), (B) by striking out “termination” in the heading of paragraph (1) and inserting in lieu thereof “levy, termination”, and (C) by striking out “an action” and inserting in lieu thereof “a proceeding” in paragraphs (1) and (2).

13. 1988

    Omnibus Taxpayer Bill of Rights

    Pub. L. 100–647 § 6237(e)(2)(C) · 102 Stat. 3342

    Substituted · 26 U.S.C. § 7429(g)(2)

    Pub. L. 100–647, § 6237(e)(2)(C), substituted “a proceeding” for “an action”

    Source evidence

    Code amendment note
    Subsec. (g)(2). Pub. L. 100–647, § 6237(e)(2)(C), substituted “a proceeding” for “an action”.

    Enacted provision · exact public law section
    (C) by striking out “an action” and inserting in lieu thereof “a proceeding” in paragraphs (1) and (2).

14. 1998

    Taxpayer Bill of Rights 3

    Pub. L. 105–206 title III § 3434(a) · 112 Stat. 685

    1. Substituted · 26 U.S.C. § 7429(a)(1)

       Pub. L. 105–206 substituted “Administrative review” for “Information to taxpayer” in heading

    2. Amended · 26 U.S.C. § 7429(a)(1)

       Pub. L. 105–206 amended text of par. (1) generally. Prior to amendment, text read as follows: “Within 5 days after the day on which an assessment is made under section 6851(a), 6852(a), 6861(a), or 6862, or levy is made under section 6331(a) less than 30 days after notice and demand for payment is made under section 6331(a), the Secretary shall provide the taxpayer with a written statement of the information upon which the Secretary relies in making such assessment or levy.”

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 105–206 substituted “Administrative review” for “Information to taxpayer” in heading and amended text of par. (1) generally. Prior to amendment, text read as follows: “Within 5 days after the day on which an assessment is made under section 6851(a), 6852(a), 6861(a), or 6862, or levy is made under section 6331(a) less than 30 days after notice and demand for payment is made under section 6331(a), the Secretary shall provide the taxpayer with a written statement of the information upon which the Secretary relies in making such assessment or levy.”

    Enacted provision · exact public law section
    (a) In General.— Paragraph (1) of section 7429(a) (relating to review of jeopardy levy or assessment procedures) is amended to read as follows: “(1) Administrative review.— “(A) Prior approval required.— No assessment may be made under section 6851(a), 6852(a), 6861(a), or 6862, and no levy may be made under section 6331(a) less than 30 days after notice and demand for payment is made, unless the Chief Counsel for the Internal Revenue Service (or such Counsel’s delegate) personally approves (in writing) such assessment or levy. “(B) Information to taxpayer.— Within 5 days after the day on which such an assessment or levy is made, the Secretary shall provide the taxpayer with a written statement of the information upon which the Secretary relied in making such assessment or levy.”.

    Effective date note
    Pub. L. 105–206, title III, § 3434(b), July 22, 1998, 112 Stat. 760, provided that: “The amendment made by this section [amending this section] shall apply to taxes assessed and levies made after the date of the enactment of this Act [July 22, 1998].”

18 of 18 references resolved to an enrolled provision