[Federal Register Volume 59, Number 98 (Monday, May 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12464]
[[Page Unknown]]
[Federal Register: May 23, 1994]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[TD 8541]
RIN 1545-A060
Civil Actions by Persons Other Than Taxpayers
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
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SUMMARY: This document contains final regulations adding language to
the existing regulations regarding civil actions by persons other than
taxpayers, to clarify language that is ambiguous or confusing. The
final regulations provide that when the IRS levies on property that is
in the custody of an agency of the Federal Government, a third party
(i.e., someone other than the taxpayer) who is injured by such levy may
have a cause of action against the Government for wrongful levy.
EFFECTIVE DATE: These regulations are effective December 23, 1993.
FOR FURTHER INFORMATION CONTACT: Jerome D. Sekula, (202) 622-3640 (not
a toll-free call).
SUPPLEMENTARY INFORMATION:
Background
This document contains final regulations amending the Procedure and
Administration Regulations (26 CFR part 301) under section 7426 of the
Internal Revenue Code (Code). On December 23, 1993, a notice of
proposed rulemaking relating to civil actions by persons other than
taxpayers was published in the Federal Register (58 FR 68092). No
written comments were received. No public hearing was requested or
held. Because no comments were received, the proposed regulations under
section 7426 are adopted without revision by this Treasury decision.
The preamble to the notice of proposed rulemaking contains the
explanation of the provisions of this Treasury decision.
Special Analyses
It has been determined that this Treasury decision is not a
significant regulatory action as defined in EO 12866. Therefore, a
regulatory assessment is not required. It has also been determined that
section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5)
and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply to
these regulations, and, therefore, a Regulatory Flexibility Analysis is
not required. Pursuant to section 7805(f) of the Internal Revenue Code,
the notice of proposed rulemaking preceding these regulations was
submitted to the Small Business Administration for comment on its
impact on small business.
Drafting Information
The principal author of these regulations is Jerome D. Sekula,
Office of the Assistant Chief Counsel (General Litigation), IRS.
However, other personnel from the IRS and Treasury Department
participated in their development.
List of Subjects in 26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Adoption of Amendment to the Regulations
Accordingly, 26 CFR is amended as follows:
Paragraph 1. The authority citation for part 301 continues to read
in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 301.7426-1 is amended as follows:
1. Paragraph (a)(1) is revised to read as set forth below.
2. Paragraph (c) is added to read as set forth below.
Sec. 301.7426-1 Civil actions by persons other than taxpayers.
(a) Actions permitted--(1) Wrongful levy--(i) In general. If a levy
has been made on property or property has been sold pursuant to a levy,
any person (other than the person against whom is assessed the tax out
of which such levy arose) may bring a civil action against the United
States in a district court of the United States based upon such
person's claim--
(A) That such person has an interest in, or lien on, such property
which is senior to the interest of the United States; and
(B) That such property was wrongfully levied upon.
(ii) Debt owed by another Federal agency. Section 7426 and this
paragraph (a) apply when a levy is made by the Internal Revenue Service
on a debt owed to a taxpayer by another Federal agency. By contrast,
section 7426 and this paragraph (a) do not apply if the Internal
Revenue Service requests payment from another Federal agency pursuant
to a request for setoff.
* * * * *
(c) Effective date. Paragraph (a)(1) of this section is effective
as of December 23, 1993.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
Approved: May 9, 1994.
Leslie Samuels,
Assistant Secretary of the Treasury.
[FR Doc. 94-12464 Filed 5-20-94; 8:45 am]
BILLING CODE 4830-01-U
