Lien Act of 1966, Public Law 89-719, C.B. 1966–2, 623, under which a notice of sale must be given to the United States Government in certain foreclosure proceedings where the Government has a status of junior lienor. SEC. 2. BACKGROUND. .01 Section 7425 (b) of the Code deals with the effect on the Government's interest in property in which the United States has or claims a Federal tax lien, or a title derived from the enforcement of a Federal tax lien, when a sale of property (other than in judicial proceedings) is made pursuant to: (i) an instrument creating a lien on the property sold, (ii) a confession of judgment on the obligation secured by an instrument creating a lien on the property sold, or (iii) a statutory lien on the property sold. .02 Section 7425 (c) (1) of the Code provides that a notice of a sale described in section 7425 (b) shall be given, in writing, by registered or certified mail or by personal service, not less than 25 days prior to such sale, to the Secretary of the Treasury or his delegate. .03 In any situation where a notice of Federal tax lien has not been filed with respect to a taxpayer or has been filed less than 31 days before the scheduled sale, it is not necessary to notify the district director's office of a sale of the taxpayer's property under section 7425 (c) (1) of the Code. In these situations, the rights of the United States are determined, in accordance with local law, in the same manner as the rights of any other claimant against the property. SEC. 3. ADEQUACY OF NOTICE. .01 In order to assist those persons who are planning these nonjudicial sales, a notice of sale will be considered adequate which contains the following: 1. Either a copy of each Notice of Federal Tax Lien (Form 668) or the following information shown on each filed Notice of Federal Tax Lien: (a) The internal revenue district which originated the Notice of Federal Tax Lien. (b) The serial number as shown on each notice. (c) The name of the taxpayer as shown on each notice. (d) The residence or place of business of the taxpayer as shown on each notice. (e) The date and place of filing of each notice. 2. With respect to the property to be sold, the following information must appear on the notice of sale: (a) In the case of real or personal property, an adequate description of the property. (b) The time, place, and terms of the proposed sale of the property. (c) In the case of a sale of perishable property described below, a description of the perishable nature of the property. 3. With respect to the interest of the person selling the property, show the present outstanding amount of his interest in the property. .02 A notice of sale which does not contain the above information will not be considered adequate by the Internal Revenue Service. In addition, although not required, an abstract of title would be helpful, if available in the case of real property. .03 This notice of sale is to be given in writing, by registered or certified mail or delivered by hand, not less than 25 days prior to the sale, to the Chief, Special Procedures Section, in the office of the district director for the internal revenue district where the sale is to be conducted. It is not necessary or advisable to send copies of the notice of sale to the Secretary of the Treasury, the Commissioner of Internal Revenue, or the United States attorney. .04 Section 7425 (c) (3) of the Code provides that, notwithstanding the notice requirements discussed above, a sale described in section 7425 (b) of property liable to perish or become greatly reduced in value by keeping, or which cannot be kept without great expense, shall discharge or divest such property of the lien or title of the United States if written notice of the sale is given, in writing, by registered or certified mail, or by personal service to the district director's office before such sale. The proceeds (exclusive of costs) of the sale shall be held as a fund, for not less than 30 days after the date of the sale, subject to the liens and claims of the United States, in the same manner and with the same priority as the liens and claims of the United States had with respect to the property sold. 05 In the case where a person is required to sell perishable goods before the issuance of regulations, the Service will accept a notice of the sale of perishable goods which contains the same information as that specified above with respect to a notice of sale under section 7425 (b) of the Code. A notice of sale which does not contain all of the required information will not be considered adequate by the Service. .06 This notice of sale of perishable goods is to be given in writing, by registered or certified mail or delivered in hand, before the sale to the Chief, Special Procedures Section, in the office of district direc tor for the internal revenue district where the sale is to be conducted. SEC. 4. EFFECTIVE DATE. .01 The notice of sale provisions of section 7425 (c) (1) of the Code and the perishable goods exception contained in section 7425 (c) (3) of the Code do not apply to sales occurring after November 2, 1966 (the effective date of the Federal Tax Lien Act of 1966), if the seller of the property performed an act before the effective date which act at the time of performance was required and effective under local law with respect to the sale. A typical example of such an act is publication of notice of the sale in a local newspaper before November 3, 1966, if local law requires such publication before a sale and the publication was effective under local law. In such instances, it is not necessary to notify the district director of the sale under section 7425 (c) (1) or (c) (3) of the Code. .02 The Service will consider as adequate any notice of sale given before December 22, 1966, the date of issuance of Technical Information Release No. 873. SEC. 5. RELATED MATTERS. Pursuant to the consent to sale provisions contained in section 7425 (c) (2) of the Code, the district director, for the district where the sale is conducted, is authorized, where he deems it appropriate, to consent to the sale of property free of the Federal tax lien even though timely or adequate notice is not given. 26 CFR 601.201: Rulings and determination letters. (Also Part I, Section 401; 1.401-12.) Rev. Proc. 67-26 Procedure applicable with respect to pension, profit-sharing, annuity, and bond purchase plans covering self-employed individuals which are amended solely to conform to the changes effected by section 204 of Public Law 89-809. SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to prescribe the procedure applicable with respect to pension, profit-sharing, annuity, and bond purchase plans which are amended solely to conform to the provisions of section 204 of The Foreign Investors Tax Act of 1966, Public Law 9-809, C.B. 1966-2, 656, at 691. SEC. 2. BACKGROUND. .01 In accordance with section 601.201 (o) of the Statement of Procedural Rules, the Internal Revenue Service issues determination letters as to the qualification of plans and trusts under section 401 (a) of the Internal Revenue Code of 1954 in the case of consummated and proposed transactions relating, among other things, to (1) the initial qualification of a plan and, if trusteed, the status for exemption of the trust, and (2) amendments to plans and trusts. 02 Section 204 of Public Law 89-809 repealed paragraph (10) of section 404 (a) of the Code to eliminate the special limitation on the amount allowed as a deduction for self-employed individuals for contributions to certain pension, etc., plans and provided a new definition of "earned income" from self-employment. These changes are effective with respect to taxable years beginning after December 31, 1967. .03 Thus, many individual plans and master or prototype plans involving self-employed individuals with respect to which a favorable determination letter has been issued will be amended to conform to the changes made by Public Law 89-809. SEC. 3. PROCEDURE. 01 If the amendment only conforms the plan to the new provisions of law, the previously-issued favorable determination letter will apply to the plan as amended. Plans so amended are not to be resubmitted for further determination and no new determination letter will be issued. SEC. 4. EFFECTIVE DATE. This Revenue Procedure is effective May 15, 1967, the date of its publication in the Internal Revenue Bulletin. 26 CFR 601.105: Examination of returns and Rev. Proc. 67-271 District Audit Division conference procedures are revised. SECTION 1. PURPOSE. This Revenue Procedure provides limited revisions of district Audit Division conference procedures as announced in Revenue Procedure 64-38, C.B. 1964-2, 965. It also provides for an increase, effective June 1, 1967, in the dollar limitations set forth in Sections 5.04, 5.05, 5.06 and Section 7 of Revenue Procedure 64-38. SEC. 2. SCOPE. The revised district Audit Division conference procedures apply to unagreed field audit cases involving income, estate, gift, excise (other than excise taxes on alcohol, tobacco, narcotics, and firearms), or employment taxes. Conference procedures applicable to unagreed office audit cases remain unchanged except as noted in Section 4. SEC. 3. PROCEDURAL REVISIONS IN UNAGREED FIELD AUDIT CASES. .01 If, at the conclusion of an examination, the taxpayer does not agree with the adjustments proposed by the examining officer, the examining officer will prepare a complete examination report fully explaining all proposed adjustments. .02 Before the examination report or any district Audit Division conference invitation is sent to the taxpayer, the case files will be subjected to a thorough technical and procedural review. .03 Following the review of the case files, the taxpayer will receive a copy of the examination report under cover of a transmittal letter (commonly referred to as a "30-day letter"), providing him with a detailed explanation of the available appeal procedures and requesting the taxpayer to advise the district, ordinarily within 30 days, of his choice of action. .04 If the total amount of proposed additional tax, proposed overassessment, or claimed refund does not exceed $2,500 for any year, the taxpayer will be granted a district Audit Division conference on request, but will not be required to file a protest. Nevertheless, if he so desires, he may submit a written statement outlining the facts, law, or arguments on which he relies. .05 If the amount of proposed additional tax, proposed overassessment, or claimed refund exceeds $2,500 for any year, the taxpayer, on request, will be granted a district Audit Division conference, provided a written protest is filed setting forth the facts, law, and arguments upon which the taxpayer relies. .06 Taxpayers are encouraged to utilize the services of the district Audit Division conference procedures since they will usually result in more expeditious disposition of unagreed cases containing issues relatively free of legal or other complexities beyond the scope of the functional responsibilities of District conferees. 1 Also released as Technical Information Release 901, dated May 9, 1967. .07 Where, however, the nature or complexity of the unagreed issues is such that original consideration by the Appellate Division would usually result in the more expeditious resolution of the case, taxpayers will be invited to request initial consideration by the regional Appellate Division. Written protests filed in such cases and the case file, after preliminary screening by the Chief, Conference Staff, will be forwarded by the Audit Division to the regional Appellate Division. .08 Ordinarily, the examining officer will not attend the district Audit Division conference. .09 Changes made by the Conference Staff in the proposals set forth in all examination reports will be reflected in a Conference Audit Statement which will be forwarded to the taxpayer to inform him of changes made and to serve as a supplement to the examination report. 10 The determination of the Conference Staff will not be submitted to the district Review Staff for review. However, conference determinations may be subjected to review by the office of the Assistant Regional Commissioner (Audit). SEC. 4. DISPOSITION OF PATTERN ISSUES IN UNAGREED FIELD AUDIT AND OFFICE AUDIT CASES. If the total amount of proposed additional tax, proposed overassessment, or claimed refund does not exceed $2,500 for any year, the authority of the Chief, Conference Staff, may be extended to include resolution of selected issues on a basis similar to a substantially identical issue or pattern case previously so disposed of by a regional Appellate Division. SEC. 5. EFFECTIVE DATE. .01 This Revenue Procedure will become effective on June 1, 1967. .02 All unagreed cases in conference status prior to June 1, 1967, will be processed under existing procedures. SEC. 6. EFFECT ON OTHER DOCUMENTS. Revenue Procedure 64-38, C.B. 1964-2, 965, is superseded. SEC. 7. INQUIRIES. Inquiries relating to this Revenue Procedure should be addressed to the Assistant Commissioner (Compliance), Attention: CP:A :PO, Internal Revenue Service, Washington, D.C. 20224. 26 CFR 601.105: Examination of returns and Rev. Proc. 67-28 As announced in Revenue Procedure 66-15, C.B. 1966-1, 629, the Internal Revenue Service will, in the examination of highway-use tax returns, accept without substantiation the exclusion of 3,000 pounds in computing the "actual unloaded weight" of rear loading packertype refuse collection trucks. A similar procedure will be followed by the Service in examining returns involving side loading compaction-type refuse trucks. Revenue Procedure 66-15 is, therefore, supplemented. |