Collections may issue a jeopardy levies when collection of the tax liability is determined to be in jeopardy. Jeopardy levies are not subject to the same requirements as outlined in Internal Revenue Code (IRC) 6331 and IRM 5.11.1, Background, Pre-Levy Actions, Restrictions on Levy & Post-Levy Actions. The taxpayer’s specific appeal rights depend on the notices issued prior to or at the time of the jeopardy levy.

Part 5 (Collecting Process) of the IRM and the IRC sections listed below are the primary authorities for the legal and procedural requirements that Appeals must follow in making determinations on jeopardy levy appeals cases.

IRC sections, regulations, and other guidance providing authority and relating to jeopardy and termination and other accelerated assessments include:

The Director, Operations Support, is the executive responsible for Appeals’ policy and procedural guidance.

The Director, Policy, Planning, Quality and Analysis (PPQ&A), is responsible for program oversight.

The policy analyst shown on the Product Catalog page as the originator is the assigned author of this IRM.

PPQ&A provides trend, data analysis and detailed summary reports for Appeals.

The table below lists common acronyms used in this section:

The TBOR lists taxpayer rights, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3) , Execution of Duties in Accord with Taxpayer Rights. For additional information about TBOR, see Taxpayer Bill of Rights.

In accordance with IRM 25.30.2.3, Statement of Commitment, Appeals will work collaboratively with the TAS to enhance the taxpayer experience. For more information, see IRM 25.30.2, Service Level Agreement between the IRS Independent Office of Appeals and the Taxpayer Advocate Service.

In accordance with TFA and IRC 7803(e)(7), ATEs will ensure that "specified taxpayers" have access to the nonprivileged portion of the case file on record regarding the disputed issues (other than documents provided by the taxpayer to the IRS). ATEs will note the communications with each taxpayer regarding this issue in the case activity record (CAR). See IRM 8.6.1.2.1, Taxpayer First Act Access to Case File, for procedures.

A jeopardy levy requires the same conditions that would allow a jeopardy assessment. See IRS policy statement P-4-88 in IRM 1.2.1.5.27, regarding jeopardy assessments, and for the conditions under which a jeopardy assessment will be made.

Jeopardy levies may be subject to administrative review, judicial review, or both. Refer to IRC 7429. Statutory authority to levy is contained in IRC 6331. For normal, non-jeopardy assessments, which are in balance due status, there is generally a series of notices, prior to the delinquent account being issued to the Automated Collection System (ACS) or to a revenue officer. The first notice under IRC 6331(a) is a 21 calendar day (10 business days if the amount is $100,000 or more) notice and demand. The notice under IRC 6331(d) is the 30-day intent to levy notice. See IRM 5.11.1, Background, Pre-Levy Actions, Restrictions on Levy & Post-Levy Actions, for additional information regarding notice and demand procedures. A taxpayer must be offered IRC 7429 appeal rights when:

In order for a taxpayer to be entitled to an administrative appeal and judicial review under IRC 7429, the following conditions must have been met:

The issue is whether the jeopardy levy is reasonable under the circumstances (collection is truly in jeopardy). If the jeopardy levy is sustained by Appeals, the taxpayer can obtain judicial review of the jeopardy levy. Generally, district courts have jurisdiction over IRC 7429; however, if any of the liabilities on the jeopardy levy were being considered in Tax Court before the making of the jeopardy levy, the taxpayer can obtain judicial review of the jeopardy levy by the Tax Court.

If the jeopardy levy was issued after 30 days from the notice and demand and the taxpayer has not already been issued appeal rights under IRC 6330, then Collection must notify the taxpayer of their appeal rights under IRC 6330. See IRM 5.11.3, Jeopardy Levy without a Jeopardy Assessment. The taxpayer has 30 days from the date of the Letter 2439 to request a CDP hearing. The taxpayer must timely request a CDP hearing under IRC 6330 in order to be entitled to judicial review under that section. See IRM 8.22, Collection Due Process, for additional information about taxpayers' rights to appeal under IRC 6330.

If the taxpayer has requested a judicial review of the jeopardy assessment, the ATE should contact Area Counsel before proceeding with any jeopardy levy appeal hearing.

If the taxpayer appeals or states that a suit is being filed, Collection will contact CEASO and seek advice from Counsel, as needed. The local Appeals office will handle the administrative appeal. Collection will also advise the levy recipient(s) to delay paying over the funds while the appeal is considered using Letter 2438, Jeopardy Levy Letter to Third Party Recipient.

If the taxpayer has received all the pre-levy notices and the waiting periods have passed, the taxpayer can appeal under the Collection Appeals Program (CAP) or request an equivalent hearing (EH). The taxpayer cannot go to court if the taxpayer disagrees with Appeals' decision in a CAP or EH. See IRM 5.1.9, Collection Appeal Rights, IRM 8.24.1.3, CAP Appeals, and IRM 8.22.5, Receipt, Control and Pre-Conference Considerations, for additional information on CAP and EH cases.