PIML 96051304 / Forwarded to Patriot Information Mailing List: [Note on another subject: PIML is changing from a 7 day per week schedule to a 5 day per week schedule. There will be no Saturday or Sunday postings unless something really hot comes up.] Date: Wed, 8 May 1996 02:52:53 -0500 From: Mike Vanhooser Subject: Cc: patriots@kaiwan.com I am posting this reply and checklist per request for all who may find use in it. The first part is a previous reply, but relevant. What is a Notice of Levy? Sir, get thee to a law library, post haste! Seriously, a Notice of Levy is a de facto (bogus) document which purports to authorize government seizure of your salary/wages, property and/or rights to property, found in Internal Revenue Code (26 USC) 6331. The notices are not valid for several reasons, to begin with there must be a lein against you, enacted by court order (there never is), you must have received a proper Notice and Demand (you never do), it must be in response to nonpayment of taxes arising under subtitle E (alcohol/ tobacco/ firearms), and it must be physically signed (no rubber stamps) by an authorized agent (any agent for ATF taxes, a Criminal Investigator for taxes other than subtitle E, see IRC 7608) (it never is), and it must be served on an employer as defined in IRC 3401(d) (a government employer). I will post a checklist which you can use to educate your bank/employer/whoever as to the validity of the Notice. By best success is convincing the recipient to just write the IRS agent and ask a few questions, such as; "Agent Lestat, my customer/ employee/ whatever has raised a couple of legal points that I need some clarification on. Could you please respond to these so I can be guaranteed that I am not acting improperly in turning over this property to you, otherwise I face legal liability which will result in my being sued. Please answer the questions in the accompanying checklist, and provide documentation supporting your positions, and when I see that all legal requirements have been met and due process is being followed, I will be happy to honor your Notice of Levy. Thank you for your cooperation." The silence from the agent will be deafening. Happens every time. Here is the checklist, wear it in good health. THIRD PARTY CHECKLIST FOR DETERMINING VALIDITY OF IRS NOTICES OF LEVY INSTRUCTIONS: Do not proceed beyond each step unless the answer to each question is YES. If the answer to any question is NO, the levy is not valid Inform the IRS that you are unable to honor the levy until all legal requirements are met. [ ] Is there a copy of the court ordered warrant of distraint and Notice of Lien included with the Notice of Levy, pursuant to Federal Rules of Civil Procedure, #69? [ ] Does the tax that the IRS claims is owed arise from taxable activities subject to miscellaneous excise taxes under 26 USC subtitle E or those that would pertain to the enabling regulations of 27 CFR Part 70 (alcohol, tobacco and firearms), or are you a federal employer as defined in section 3401(d) (in one of the U.S. territories and responsible for administering provisions under 26 USC subtitle C)? [ ] Was a valid Notice and Demand sent to the individual whose property is the target of the levy? [ ] Has a valid Notice of Lien been filed with the appropriate court at least 10 days after the Notice and Demand was received and has the court issued a warrant of distraint pursuant to 26 USC section 7403? [ ] Has the IRS sent at least three notices to the individual asking for payment and has the individual refused to pay, pursuant to 26 USC section 6303? [ ] Has the IRS sent a Notice of Intent to Levy to the individual at least 30 days prior to the date on the Notice of Levy you received? [ ] Is the Notice of Levy signed in ink by a Criminal Investigator of either the Intelligence Division or the Internal Security Division of the IRS and is there a Delegation Order in existance giving that particular agent the authority to issue a Notice of Levy, pursuant to 26 USC section 7608? If all of the above conditions have been satisfied, the levy could be valid. However, if you turn over property in response to an improper levy, the individual who owns the property can sue you personally for punitive as well as actual damages, pursuant to 26 CFR 301.6332-1(c). 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