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Part 5. Collecting Process

Chapter 1. General Collecting Procedures

Section 4. Jeopardy, Termination, Quick and Prompt Assessments

5.1.4  Jeopardy, Termination, Quick and Prompt Assessments

5.1.4.1  (04-01-2005)
General

  1. Jeopardy assessments are made when it is determined under IRC 6861 and 6862 or presumed under IRC 6867 prior to assessment that deficiencies of income, estate, gift and certain excise taxes will be endangered if regular assessment and collection procedures are followed.

  2. IRC 6862 applies to taxes other than income, estate, gift and certain excise taxes whether or not the due date for filing and paying such tax has expired.

  3. Termination assessment of income tax, IRC 6851, including terminations under the conditions described in IRC 6867 applies when the taxable year of a taxpayer has not ended or when the taxable year has ended but the due date, determined with respect to extensions, for filing the return has not arrived.

  4. All jeopardy and termination assessments must be in full compliance with policy statement P–4–88 or P–4–89.

  5. A potential jeopardy or termination assessment may develop as the result of information received from a confidential informant. The source of the information must not be divulged to the taxpayer or other unauthorized personnel.

  6. A collection employee will be designated to work with the IRC 6700 committee on determinations as to whether the collection of penalties asserted against abusive tax shelter promoters is in jeopardy. In addition to the collection representative, the committee will include representatives from Examination, Criminal Investigation and SBSE Area Counsel.

5.1.4.2  (04-01-2005)
Jeopardy Assessments, Pre-Assessments

  1. Jeopardy assessments initiated by Collection personnel are limited to proposed:

    1. Trust Fund Recovery assessments

    2. Employment and excise tax assessments, whether or not the return due date has expired

    3. Partnership penalty assessments

    4. Income tax assessments when there is no question as to the amount of the liability.

  2. A jeopardy assessment is requested when:

    1. A determination is made that collection is in jeopardy

    2. One or more of the four conditions outlined in P–4–88 exists

    3. Trust Fund Recovery assessments, and 6020(b) assessments, for which appropriate appeal/protest periods have not expired

    4. Assessment/collection action is being proposed prior to the return due date for a signed return for income tax liabilities

  3. Refer to Examination Function information which could lead to a jeopardy assessment of a proposed transferee liability, disputed additional income taxes or any other tax liability.

  4. Prepare Form 2644, Recommendation for Jeopardy Assessments/Recommendation for Termination Assessments for all jeopardy assessments.

  5. Attach a report setting forth the conditions and factors in support of the recommendation including:

    • Name, address and taxpayer identification number (TIN)

    • Tax, penalty and interest to be assessed by period

    • Nature of the taxpayer's business or activity

    • Taxpayer's present financial condition

    • Information regarding the taxpayer's activity giving rise to the recommendation, such as transfer of assets without consideration;

    • Records or statements with respect to continuing business or personal losses

    • Filing record of taxpayer

    • Taxpayer’s record of resisting payment of taxes in the past (collection delays and unpaid taxes)

    • Nature and location of the taxpayer’s assets and the source(s) of income

    • Statement as to the factual basis for the determination of taxable income and a schedule showing how the tax was computed

    • Other information having a bearing upon the taxpayer’s financial condition, future anticipation of losses, etc.

5.1.4.3  (04-01-2005)
Approval Prior to Jeopardy Assessment

  1. Due to the urgency involved in jeopardy assessments, the file will be given the highest priority of handling within and between various functions.

  2. Refer to Delegation Order No. 219 for delegation authority.

  3. As a result of the enactment of the IRS Restructuring and Reform Act of 1998 on July 21, 1998, it is now a statutory requirement that the Chief Counsel or his/her delegate must approve all jeopardy and termination assessments and all jeopardy levies. This authority has been redelegated to Deputy Chief Counsel, who may redelegate the authority no lower than Assistant Division Counsel and to the Associate Chief Counsel (International) who may redelegate the authority no lower than Associate Area Counsel. Approval is now required by Counsel in ALL cases, not just in cases where time permits.

  4. Obtain Counsel's signature on Form 2644, Recommendation for Jeopardy/Recommendation for Termination Assessments. Approval via fax is permitted.

5.1.4.4  (04-01-2005)
Termination Pre-Assessment Recommendations

  1. Collection personnel will not initiate termination assessment recommendations.

  2. Refer information which could lead to a termination assessment to Examination for appropriate action.

5.1.4.5  (04-01-2005)
Responsibility of Field Territory Manager

  1. Prior to approval by the area director, the Territory Manager of the Collection function will:

    1. Review all termination and jeopardy assessment recommendations, including those initiated by Examination and Criminal Investigation.

    2. Discuss disputed cases with the originating division.

    3. Document and report unresolved issues to the director, who has final responsibility for determining that collection of the proposed tax liability is in jeopardy.

5.1.4.6  (04-01-2005)
Assessment and Post Assessment Procedures

  1. Immediately after the area director has approved the jeopardy or termination assessment, the tax will be assessed by a telephone call to the Campus. Furnish the following information:

    1. Date that Counsel approved the assessment

    2. Name and address of the taxpayer as well as taxpayer identification number (TIN), if known

    3. Type of tax

    4. Taxable period

    5. Amount of tax, and if applicable, interest and penalties

    6. Amount of any payments and balance

    7. Input TC 570 as a secondary transaction when posting payments to avoid the possibility of erroneously refunding credits.

    Note:

    The assessment will take approximately six weeks to post to the Masterfile.

  2. Form 3552 (Parts 3 and 4), Prompt Assessment Billing Assembly, may be completed and used to provide Notice and Demand. On Parts 3 and 4 of Form 3552:

    1. Change the statement in the first sentence from "should be paid within 10 days from the date of this notice" to "is due and payable immediately."

    2. Delete the last portion of the third sentence which states, "and send it with this notice to the address shown above. "

    3. Delete the statement, "Please return this copy with your payment to the address shown above" from the bottom of this form.

    Note:

    If a blank Form 3552 is not available, copy the text of one on IRS letterhead stationery.

  3. After the tax is assessed, provide the taxpayer within 5 days of assessment the following:

    1. Notice and Demand to pay the tax

    2. Notice of Jeopardy or Termination Assessment

    3. Computation of income and tax

    4. Notification of right of appeal and right of review under IRC 7429 and, in the case of levy, IRC 6330.
      (See Exhibit 5.1.4–1, Pattern Letter P–513, Notice of Jeopardy Assessment Right of Appeal; Exhibit 5.1.4–2, Pattern Letter 1583(P), Notice of Termination Assessment of Income Tax and Exhibit 5.1.4–3, Pattern Letter 2439(P), Notice of Jeopardy Levy and Right of Appeal.)

      Note:

      For jeopardy and termination assessments under the circumstances described in IRC 6867 the individual found in possession of cash or cash equivalent in excess of $10,000 will be notified that he/she is not entitled to judicial review under IRC 7429 and no notice of right of appeal is provided (see IRC 6867(b)(c)). However, a termination or jeopardy assessment under IRC 6867 is appealable to the Appeals Office.

    5. Personally deliver notices when possible.

    If the taxpayer … Then …
    Cannot be located Send by certified mail to the last known address of the taxpayer.
    No longer resides at the address on the assessment Check IDRS for a new address.
    Review the jeopardy or termination file for the taxpayer's current residence.

  4. Determine whether to file a Notice of Federal Tax Lien (NFTL).

    If … Then …
    The taxpayer does not full pay the amount of the assessment upon issuance of the Notice and Demand File a Notice of Federal Tax Lien through the Automated Lien System (ALS).
    It is determined that the filing of the lien will not ensure that the taxpayer will not dispose of, dissipate, or hide personal property Immediate action should be taken to levy on cash or other liquid assets of the taxpayer in the possession of third parties. See IRM 5.11.3.4 for the forms and pattern letters to be used for the jeopardy levy.
    Note: IRC section 6863 provides conditions for the stay of collection of jeopardy or termination assessments.

  5. Internal Revenue Code sections 6851 and 6867 provide for the assessment (termination) and collection of tax associated with cash amounts in excess of $10,000 when the cash or cash equivalent has been seized by law enforcement authorities and the owner cannot be identified. Collection of these assessments comes from the cash itself not from the possessors personal assets.

    1. Establish a "dummy" account on NonMasterfile styled "Possessor’s Name, as Possessor of Certain Cash" .

    2. Abate the remaining balance when the entire assessment is not collected.

5.1.4.7  (04-01-2005)
Liaison

  1. Effective administration of jeopardy and termination assessment procedures requires the close cooperation of all involved Service personnel.

  2. The Technical Services units have overall responsibility for liaison between:

    • Examination

    • Collection

    • Criminal Investigation

    • Appeals

    • SBSE Area Counsel

  3. Responsible Service employees must keep the Technical Services Manager informed of the status of the case.

    If … Then Technical Services will…
    The taxpayer commences a proceeding in the district court to review the action taken by the Service Transmit the administrative file to SBSE Area Counsel within one workday.

    Advise appropriate personnel that such an action has been commenced.
    The taxpayer files a civil suit at any time prior to conclusion of the administrative appeals Request the entire collection and/or examination file for transmission to SBSE Area Counsel
    An individual comes forward and claims ownership of the cash (or cash equivalent) previously assessed under IRC 6867 Advise the individual to submit a written request signed under the penalties of perjury to the area director marked for the attention of the Technical Services Manager. The written request will include the following:

      a. Name, address, and social security number of the person submitting the request
      b. Detailed description of the property levied upon, if other than cash; if cash, state the exact amount seized.
      c. Description of the claimant’s basis for claiming the property levied upon as belonging to the claimant.
      d. Name and address of the "Possessor" of the cash or cash equivalent (the person who was originally found to be in possession of the cash and who denied its ownership and did not properly identify the true owner).
      e. Originating Internal Revenue area, the date of lien or levy as shown on the Notice of Tax Lien (Form 668(v)), Notice of Levy (Form 668–A) or Levy (Form 668–B) or, in lieu thereof, a statement of the reasons why such information cannot be furnished.

    If... Then...
    The request is submitted under conditions above and is disallowed Technical Services should notify the claimant as soon as possible of the right to bring suit against the government under provisions of IRC 7426 or for an administrative appeal with the Appeals Office.
    Technical Services determines that the claim is valid Refer the claim to Examination for consideration. Examination is responsible for abating any overassessment and refunding the overassessment to the claimant if applicable.
      Examination will notify Collection function of their determination so that Technical Services can arrange for disposition of any non-cash items seized.
    There is any litigation filed against the government because of a jeopardy assessment made under IRC 6867 Technical Services will notify Examination and furnish a copy of the third party's claim unless previously furnished.

5.1.4.8  (04-01-2005)
Processing Abatements

  1. Collection personnel will prepare Form 3870, Request for Adjustment, to decrease tax, penalty and interest as determined by Appeals or District Court.

  2. Regulations concerning requests for abatements of jeopardy assessments are considered to refer to taxpayers’ requests for administrative review of jeopardy assessments. However, some jeopardy assessments may be abated in whole or in part by the area director if he/she finds, without taxpayer’s written request for review, an error in fact, judgment or computation.

  3. Final District Court orders to abate all or a part of the tax should be relayed by SBSE Area Counsel to Technical Services, who will return any files to the initiating office, for immediate processing of the abatement.

  4. When the district court order is based on a determination that the collection of the tax was not in jeopardy, Examination will reestablish the taxpayer’s filing requirement and ensure examination of the taxpayer’s current year return.

5.1.4.9  (04-01-2005)
Quick Assessment

  1. Quick assessment procedures are required when the assessment statute will expire within 90 days and is limited to the following situations:

    1. Additional taxes and agreed deficiencies when the statutory period for assessment will expire before assessment action can be completed under regular procedures.

    2. Deficiencies or current additional and delinquent taxes where receivership proceedings are involved or imminent (per IRC 6871).

  2. A quick assessment:

    1. Does not provide authority to make immediate demand for payment of the tax liability assessed.

    2. Allows the taxpayer the statutory ten-day period in which to pay and the 30-day "notice of intent to levy" period under IRC 6331(d).

      Note:

      If the taxpayer is in a receivership or probate proceeding, an immediate proof of claim may be filed.

    3. Will not change (update) the existing Masterfile entity information.

      Note:

      Use Form 2363, Masterfile Entity Change, to change the Masterfile entity to agree with the information on that return.

  3. To eliminate unpostable conditions, a transcript of the module involved will be researched, if practical, to determine if:

    1. Module is established on Masterfile

    2. TIN and name line agree with the Form 2859, Request for Quick or Prompt Assessment, information

    3. Tax period was not previously assessed

    4. No freeze codes exist

    5. Proper transaction codes are being input and are not duplications

    6. Taxpayer is in bankruptcy

5.1.4.10  (04-01-2005)
Methods to Request Quick Assessments

  1. Quick assessments may be requested using the following methods:

    • Telephone Requests when 30 days remain on the assessment statute

    • Facsimile (FAX) Requests

    Note:

    The facsimile method must be approved and implemented at the discretion of each area office and in concert with Accounting Control/Services.

5.1.4.11  (04-01-2005)
Quick Assessments on Trust Fund Recovery Penalty

  1. See IRM 5.7.6.4 for the procedures to follow for quick assessments on Trust Fund Recovery Penalty cases.

5.1.4.12  (04-01-2005)
Prompt Assessments

  1. A prompt assessment is a manually processed assessment of a secured return when collection appears to be at risk and the intention is to proceed with collection action immediately following the period for Notice and Demand.

  2. See IRM 5.7.6.4 for prompt assessment procedures for Trust Fund Recovery Penalty cases.

  3. A prompt assessment of employment, excise, and partnership tax returns prepared and signed under authority of IRC 6020(b) may be requested provided that Letter 1085(DO), 30 day letter, Proposed IRC 6020(b) Assessment, or Letter 1616(DO), 30 day Letter, Proposed IRC 6020(b) Assessment (Partnership Return) has been sent to the taxpayer and the appeal period has lapsed.

  4. The initiator must always determine prior to the recommendation:

    If the taxpayer is... Then
    In bankruptcy prior to initiating a prompt assessment Contact Technical Services.
    Quickly placing property beyond the reach of the government Collection action may be pursued although the 10 day notice and demand period and the 30 day notice of intent to levy has not expired. Refer to Jeopardy Levy Without a Jeopardy Assessment.
    An in business pyramiding, taxpayer Do not do a prompt assessment where the proposed plan of action is to enter into an installment agreement.

  5. The initiator will establish and document in the case history a plan of action for ultimate resolution of the balance due. A prompt assessment will not be recommended in the following instances:

    1. Taxpayer will be granted or already has an existing installment agreement

    2. Assessment will be reported as currently not collectible

    3. No distrainable assets

    4. Pyramiding tax liabilities and no enforcement action is pending.

  6. All applicable penalties must be computed by the revenue officer.

5.1.4.13  (04-01-2005)
Methods to Request Prompt Assessments

  1. Prompt assessments may be requested using the following methods:

    • Telephone Requests when there is 30 days or less left on the assessment statute

    • Facsimile (FAX) Requests

    Note:

    The facsimile method must be approved and implemented at the discretion of each area office and in concert with Accounting Control/Services.

5.1.4.14  (04-01-2005)
Processing Telephone Prompt and Quick Assessments

  1. The initiator should complete Form 2859 prior to initiating the telephone call. The Form 2859 and appropriate tax returns and attachments will be mailed immediately to the Campus.

  2. Upon receipt of the telephone request, Accounting Control/Services will:

    • Assign a Document Locator Number (DLN)

    • Journalize

    • Prepare a separate Assessment Certificate

    • Notify the initiator of the appropriate DLN and Assessment 23–C date.

  3. Annotate in red Form 2859 in the Remarks section as follows:

    • "Telephone Request"

    • "Agreed Prompt" — for a second return

    • "Unagreed Prompt" — for a 6020(b) return

    • "Agreed Other" — for Trust Fund Recovery Penalty

    • "Unagreed Other" — for Trust Fund Recovery Penalty

  4. Attach returns to Form 2859 and annotate returns "Back-up for Prompt or Quick Assessment" (whichever is applicable).

  5. Distribute Form 2859 with back-up documents as follows:

    1. Send Form 2859, Parts 1, 2, and 3 with tax return(s) to Accounting Control/Services.

    2. Retain Part 4 as the initiator’s file copy.

  6. Routinely process any payment received with the tax return.

  7. Processing Form 3552:

    If the initiator... Then...
    Requested the preparation of the Form 3552 The Campus will prepare the Form 3552 and will forward Parts 3 and 4 to the initiator.
    Did not request the preparation of Form 3552 The initiator will:
      a. Prepare Form 3552.
      b. Immediately deliver or mail certified, Parts 3 and 4, along with Publication 1 to the taxpayer.
      c. Match the manually prepared Form 3552 with IDRS when the assessment has posted to Masterfile for verification of amounts and other information.
      d. Take appropriate corrective actions if errors are discovered.

5.1.4.15  (04-01-2005)
Processing Facsimile (FAX) Quick and Prompt Assessments

  1. CAUTION: Facsimile procedures are available as an alternate method only if the area and Campus have approved implementation of this process.

  2. In order for Accounting Control/Services to receive a legible copy of transmitted documents, all forms must be transmitted as original documents. Do not use photocopies of Forms 2749, 2859T, or 2859.

  3. If a quick or prompt assessment facsimile request is recommended, the initiator will:

    1. Prepare Form 2859, Request for Quick or Prompt Assessment.

    2. Prepare Form 2859T, Prompt or Quick Assessment Transmittal Request.

    3. Send a photocopy of Form 2859 to Technical Services if receivership proceedings are involved.

    4. Forward Forms 2363 and 4844 to the appropriate area office function for input. Do not attach these forms to the 2859 or the return.

  4. Assemble the assessment package for facsimile transmission in the following order:

    Accounting Control/Services

    • Form 2859T

    • Form 2859

    • Tax returns (with attachments)
    CSCO

    • Form 2859T

    • Form 2859

  5. Upon receipt, Accounting Control/Services will process the request and either fax the appropriate form, or will telephone acknowledgment of receipt along with the 23–C date and the DLN with corrections to the computation, if necessary, to the initiator immediately.

  6. Once the initiator has received acknowledgment of receipt, the summary date of assessment and a DLN, the original returns should be labelled"DO NOT PROCESS. FAX COPY TREATED AS ORIGINAL"

5.1.4.16  (04-01-2005)
Mathematical Errors

  1. When a Campus discovers a math error on a return submitted for a prompt assessment, they will:

    1. Prepare the Form 3552 and indicate the math error amount.

    2. Isolate the math error and show in the Reference and T.C. sections as "Additional Assessment (M.E.)–290. "

  2. When the taxpayer is given notice of the liability:

    1. Explain parts 3 and 4 of the Form 3552, i.e., the math error assessment.

    2. Advise them of their appeal rights

    3. Collection action will not be pursued on the math error amount on a contested assessment.

    4. Advise the taxpayer to address a request for abatement to the service center.

Exhibit 5.1.4-1  (04-01-2005)
Pattern Letter P–513 (Rev. 5–78)
(Reference: IRM 5.1.4.6)

(Type on Appropriate Letterhead)
NOTICE OF JEOPARDY ASSESSMENT AND RIGHT OF APPEAL

(Salutation)
 Under section (insert 6861, 6862 or 6867) of the Internal Revenue Code, you are notified that I have found you (insert reason for asserting the jeopardy assessment) thereby tending to prejudice or render ineffectual collection of (insert type of tax) for the period___. Accordingly, based on information available at this time, I have approved assessment of tax and additional amounts determined to be due as reflected in the attached computations:
  Taxable Period  Tax  Penalty  Interest
 Under section 7429 of the Internal Revenue Code, you are entitled to request administrative and judicial reviews of this assessment action.
 For an administrative review, you must file a written protest with the Area Director within 30 days from the date of this letter, requesting redetermination of whether or not:
 1. the making of the assessment is reasonable under the circumstances, and/or
  2. the amount so assessed or demanded as a result of the action is appropriate under the circumstances.
 A conference will be held on an expedite basis to consider your protest. Your protest will be forwarded to the Area Appeals Office where a conference will be held.
 If you submit new information or documentation for the first time at an Appeals conference, the Appeals Office may request comment from the Area Director on such evidence or documents.
 Enforced collection action may proceed during any administrative appeal process unless arrangements are made regarding collection of the amount assessed. To make such arrangements, please contact (indicate name and telephone number of appropriate area office official).
 You may pursue a judicial review of this assessment by bringing a civil suit against the United States in the U.S. District Court in the judicial district in which you reside, or in which your principal office is located. However, in order to have this action reviewed by the District Court, you must request administrative review within 30 days of the date of this letter. Such suit must be filed within 90 days after the earlier of (1) the day the Service notifies you of its decision on your protest, or (2) the 16th day after your protest. The Court will make a determination of whether the making of the assessment is reasonable under the circumstances, and whether the amount assessed or demanded is appropriate under the circumstances. The Court’s determination is final and not reviewable by any other court.
Appeal to the courts in Case of Income, Estate, Gift and Certain Excise Taxes
If an agreement is not reached with the Internal Revenue Service, a notice of deficiency is required by law to be issued within 60 days from the date of jeopardy assessment made under section 6861 of the Internal Revenue Code. You will then have 90 days (150 days if outside the United States) from the date the notice is mailed to file a petition with the United States Tax Court.
Appeal to Courts In Case of Other Taxes Assessed Under IRC 6862
 Claim for credit or refund of taxes assessed under section 6862 of the Internal Revenue Code may be filed in accordance with section 6511(a) of the Code of administrative and judicial review of the merits of the liability assessed. An administrative decision on the claim may be appealed to the courts under the provisions of section 7422(a) of the Code.

  Very truly yours,
  Area Director
   
Enclosure
 Computation 		 

Exhibit 5.1.4-2  (04-01-2005)
Pattern Letter 1583(P) (Rev. 8–81)

(formerly Pattern Letter P–49)
(Reference: IRM 5.1.4.6)

(Type on Appropriate Letterhead)
NOTICE OF TERMINATION ASSESSMENT OF INCOME TAX

(Salutation)
 Under section 6851 of the Internal Revenue Code, you are notified that I have found you (insert specific facts and reasons for termination assessment action) thereby tending to prejudice or render ineffectual collection of income tax for the (current/preceding) taxable year. Accordingly, the income tax, as set forth below, is due and payable immediately.
  Taxable Year  Tax  Penalty
 Based on information available at this time, tax and penalty, if any, reflected in the attached computations, have been assessed.
 This action does not relieve you of the responsibility for filing a return for your usual annual accounting period under section 6012 of the Code. Such return must be filed with the office of the Area Director of the area in which you reside, or the area in which your principal office is located, not with the Internal Revenue Service Center. A copy of this letter should accompany the return so that any amount collected as a result of this termination assessment will be applied against the tax finally determined to be due on your annual return or to be credited or refunded.
 Under section 7429 of the Internal Revenue Code, you are entitled to request administrative and judicial reviews of this assessment action.
 For an administrative review, you must file a written protest with the Area Director within 30 days from the date of this letter, requesting redetermination of whether or not:
 1. the making of the assessment is reasonable under the circumstances, and/or
 2. the amount so assessed or demanded as a result of the action is appropriate under the circumstances.
 When feasible, a conference will be held on an expedite basis by the Area Appeals Office to consider your protest.
 If you submit information or documentation for the first time at an Appeals conference, the Appeals Office may request comment from the Area Director on such evidence or documents.
 Enforced collection action may proceed during any administrative appeal process unless arrangements are made regarding collection of the amount assessed. To make such arrangements, please contact (indicate name and telephone number of appropriate area office official).
 You may pursue a judicial review of this assessment by bringing a civil suit against the United States in U.S. District Court in the judicial district in which you reside or in which your principal office is located. However, in order to have this action reviewed by the District Court, you must first request administrative review within 30 days of the date of this letter. Such suit must be filed within 30 days after the earlier of (1) the day the Service notifies you of its decision on your protest, or (2) the 16th day after your protest. The Court will make an early determination of the same points raised in your protest to determine whether the making of the assessment is reasonable under the circumstances and to determine whether the amount assessed or demanded as a result of the action is appropriate under the circumstances. The Court’s determination is final and not reviewable by any other court.

  Very truly yours,
  Area Director
   
Enclosure
 Computation 		 

Exhibit 5.1.4-3  (12-13-1999)
Pattern Letter 2439(P) (Rev. 1–99)
(Reference IRM 5.1.4.6)

  Letter Number:
 2439(P)
   
  Letter Date:

(Type on Appropriate Letterhead. Should contain IRS Address)
NOTICE OF JEOPARDY LEVY AND RIGHT OF APPEAL


Dear (taxpayer name):
 As required by Section 6331 of the Internal Revenue Code (IRC), I am notifying you that I have found that you are (insert reason for the jeopardy levy) thereby putting our collection of the (insert type of tax) you owe for the period(s) in jeopardy. Therefore, based on the information available to me at this time, I have approved the issuance of a levy to collect the amount you owe, although ( choose insert
we have not provided you a notice of intent to levy and/or notice of your right to a hearing, generally required by Sections 6330 and 6331 of the IRC or
the 30 days we told you in our previous notice of intent to levy and/or notice of your right to a hearing that you had before we would issue a levy has not run out).

You now owe:
Tax Period(s)  Tax  Penalty  Interest  Total

Under IRC Section 7429, you are entitled to request an administrative review of this action. For this review, you must file a written protest with the Area Director at the above address within 30 days from the date of this letter, requesting a redetermination of whether the levy is reasonable under the circumstances.

  Also, under IRC Section 6330, you are entitled to request a Collection Due Process (CDP) hearing with the IRS Office of Appeals at which you may bring up issues in addition to whether our decision that collection is in jeopardy is reasonable. For this hearing, you must submit a request in writing to the Area Director within 30 days from the date of this letter. See the enclosed Publication 594, Understanding the Collection Process; Publication 1660, CoIllection Appeal Rights; and Form 12153, Request for A Collection Due Process Hearing. The references to notice of intent to levy in these Publications and this Form do not apply, because such notice is not required when collection is in jeopardy. If you request a hearing under both provisions, we may handle both at one hearing.

 We may proceed with enforced collection action during any administrative review or appeal process, unless you make arrangements regarding collection of the amount you owe. To make such arrangements, or if you have other questions about this letter, please contact ( name of appropriate area office official) at (appropriate telephone number).

  Under IRC Section 7429, you may pursue a judicial review of whether the determination that collection is in jeopardy is reasonable, by bringing a civil suit against the United States in the U.S. District Court in the judicial district in which you live, or in which your principal office is located. However, if you filed a timely petition with the Tax Court for a redetermination of a deficiency under IRC Section 6213(a) before we served the levy, and at least one of the taxes for one period included on the levy is also included in that petition, the Tax Court (in addition to the U.S. District Court) also has jurisdiction for a judicial review of the levy for all tax periods on the levy. You may also request a judicial review under IRC Section 6330 after the CDP hearing as explained in the enclosed Publication 1660.

  In order to receive a judicial review of the levy under IRC Section 7429, you must first request an administrative review under that provision within 30 days from the date of this letter. You must file your suit within 90 days after the earlier of (1) the day the Service notifies you of its decision on your protest, or (2) the 16th day after you make the protest. The court will make a determination whether the determination that collection was in jeopardy was reasonable under the circumstances. The court’s determination is final and not reviewable by any other court.

In order to receive a judicial review under IRC Section 6330, you must first request a CDP hearing under that provision within 30 days from the date of this letter. You must request the judicial review within 30 days from the date of the Notice of the Determination issued by the IRS Office of Appeals at the conclusion of the hearing, as explained in Publication 1660.

  Sincerely,
   
  Field Territory Mana