Congress should adopt the following provision as a procedural requirement for levy:

    The Secretary shall either send by certified mail or registered
    mail, or hand deliver in person or by leaving at the dwelling or
    usual place of business, of such individual, a written Notice of
    Intent To Seize within the 10-day to 30-day period preceding the
    date of levy, unless collection of such tax is in jeopardy. Such
    notice will notify the taxpayer of the levy provisions of the
    Code, administrative appeal procedures prior to levy, and
    possible alternative collection remedies available to the
    taxpayer, such as installment agreement, Offer in Compromise,
    and suspension of collection due to hardship. This notice shall
    also serve as the same notice specified in Section 6331(d)(1).

Reasons for Change:

In its July 1978 report, "IRS Seizure of Taxpayer Property: Effective, But Not Uniformly Applied," the GAO reported that 25% of the taxpayers they interviewed were not aware of IRS's seizure authority. Furthermore, 57% said they were not told that seizure was the next action to be taken. The GAO felt that "informing taxpayers about these powers and that seizure is the next action might reduce seizures," and thereby "save both IRS and the taxpayers time, trouble, and expense."

Taxpayers currently have the right, under an informal process, to appeal a revenue officer's decisions concerning payment options proposed, a rejection of an offer in compromise, or the decision to seize. When taxpayers reach an impasse with revenue officers regarding their ability to pay, IRS guidelines provide that taxpayers be given an opportunity to request a review by a group manager (IRM 53(10)2).

If taxpayers do not request a higher level review of their case, revenue officers are supposed to inform them of their right to appeal. However, the GAO discovered that revenue officers were not following those instructions in some districts, and recommended that revenue officers in all districts need to substantially improve their performance in advising taxpayers of this right.