S. 1390Senate112th Congress (2011-2013)In Committee

Tax Lien Simplification Act

Sponsored by Carl LevinSen. Carl Levin (D-MI)
Introduced July 20, 2011

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

July 20, 2011

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SenateIntro Referral

Introduced in Senate

July 20, 2011

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S4722-4724)

July 20, 2011

SenateIntro Referral

Read twice and referred to the Committee on Finance.

July 20, 2011

Floor Debate

18 members

What members said about S. 1390 on the floor

7 Republicans11 Democrats
Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Sep 26, 2011

I thank the Senator from New York, who has been a strong clarion voice on this issue. He has helped to crystalize what this is about. He is exactly right. I want to read into the Record, as the…

Carl Levin
Sen. Carl LevinD-MI · Jul 20, 2011

Mr. President, as Congress continues to debate ways to reduce our national deficit, some Members of Congress are taking the time to reflect on the state of the Federal tax system and consider how we…

Carl Levin
Sen. Carl LevinD-MI · Jul 20, 2011

Mr. President, as Congress continues to debate ways to reduce our national deficit, some Members of Congress are taking the time to reflect on the state of the Federal tax system and consider how we…

John F. Kerry
Sen. John F. KerryD-MA · Sep 15, 2011

Madam President, I yield myself such time as I use. Let me, first of all, thank the Senator from Michigan, the chairman of the Armed Services Committee, for his comments and particularly for the…

Carl Levin
Sen. Carl LevinD-MI · Sep 15, 2011

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I understand that a couple of our colleagues are on their way, and I will yield to them if…

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John Thune
Sen. John ThuneR-SD · Sep 15, 2011

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, in a few minutes we are going to be voting on a bill that has been put on the floor that would…

Carl Levin
Sen. Carl LevinD-MI · Sep 26, 2011

Mr. President, over the last week or so I have outlined, here and in a letter to the Joint Select Committee on Deficit Reduction, a seven-part plan to reduce the deficit in ways that do not…

Rand Paul
Sen. Rand PaulR-KY · Sep 15, 2011

Mr. President, I ask unanimous consent the order for the quorum call be rescinded. Mr. President, I ask unanimous consent to call up amendment No. 613. I ask unanimous consent the reading of the…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Sep 26, 2011

I ask unanimous consent to speak for 10 minutes. Mr. President, let me say to the Senator from Louisiana, she has been a clarion and consistent voice on this issue because she has seen it and lived…

Tom Coburn
Sen. Tom CoburnR-OK · Sep 15, 2011

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. I ask that amendment No. 610 be considered as pending, brought up, and read. I ask unanimous consent that…

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Sep 26, 2011

First, Mr. President, let me thank my colleague from Florida. He knew I was waiting, and I know he cut short his remarks, so I appreciate that. But more importantly than that, I appreciate his…

Jeff Sessions
Sen. Jeff SessionsR-AL · Sep 15, 2011

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, we are looking at a FEMA emergency supplemental. There is no doubt this country has sustained a…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Jul 20, 2011

Mr. President, I rise today to introduce the EPA Regulatory Relief Act of 2011. I am pleased to be joined in this effort by my colleagues Senators Wyden, Alexander, Landrieu, Pryor, and Toomey. Our…

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Joe Manchin III
Sen. Joe Manchin IIID-WV · Sep 26, 2011

Mr. President, I think we all appreciate so much the passion and compassion our colleague from Louisiana has for the people of America--not just the people of Louisiana but all over America. I thank…

Ron Wyden
Sen. Ron WydenD-OR · Jul 20, 2011

Mr. President, biomass energy development is not only a great economic opportunity for Oregon, it is an essential piece of the forest health puzzle. Biomass energy helps create a market and a way to…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · Sep 15, 2011

Madam President, I rise today to join my colleagues in urging the Senate to adopt this resolution and replenish the disaster relief fund without further delay. To so many people struck by disaster…

Harry Reid
Sen. Harry ReidD-NV · Sep 15, 2011

Mr. President, I ask unanimous consent that the motion to commit and the pending amendments, with the exception of the Reid substitute amendment No. 602, be withdrawn, and the following amendments be…

Bill Nelson
Sen. Bill NelsonD-FL · Sep 26, 2011

Mr. President, I want to comment before the Senator from Louisiana leaves the floor. It is kind of like we have seen this movie before. If I recall, it was Friday. The Senator from Louisiana and I…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Sep 15, 2011

I know the vote has been scheduled, but I ask unanimous consent 2 minutes be provided prior to the amendment votes and 4 minutes prior to final passage. Madam President, how much time before the…

Harry Reid
Sen. Harry ReidD-NV · Sep 26, 2011

Has the time arrived for the vote? In fact, before we do that, I note the absence of a quorum. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I…

Mike  Johanns
Sen. Mike Johanns R-NE · Sep 15, 2011

Madam President, I ask unanimous consent to speak as in morning business for about 5 minutes. I rise today to actually extend an invitation. The invitation I extend is to our EPA Administrator, Lisa…

Debbie Stabenow
Sen. Debbie StabenowD-MI · Sep 26, 2011

That is correct and I thank the Senator for all his efforts in support of children's dental coverage as well and for this opportunity to clarify the intentions of my amendment. I offered this…

Mitch McConnell
Sen. Mitch McConnellR-KY · Sep 26, 2011

Mr. President, I am going to very briefly walk us through where we have been and where we are. After tonight's vote, I think the best path forward is clear. The quickest and surest way to get FEMA…

Rand Paul
Sen. Rand PaulR-KY · Sep 26, 2011

Mr. President, I rise today to speak against the process by which this body is passing major legislation as we approach the end of this fiscal year. Last week we were asked, without debate or…

Bill Text

Latest available legislative text

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Introduced in SenateIssued July 20, 2011

II

112th CONGRESS

1st Session

S. 1390

IN THE SENATE OF THE UNITED STATES

July 20 (legislative day, July 19), 2011

Mr. Levin (for himself and Mr. Begich) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to simplify, modernize, and improve public notice of and access to tax lien information by providing for a national, Internet accessible, filing system for Federal tax liens, and for other purposes.

1.

Short title

This title may be cited as the Tax Lien Simplification Act.

2.

Findings and purpose

(a)

Findings

Congress makes the following findings:

(1)

The present decentralized system for filing Federal tax liens in local property offices, which was established before the advent of modern computers, the Internet, and e-government programs, is inefficient, burdensome, and expensive.

(2)

Current technology permits the creation of a centralized Federal tax lien filing system which can provide for enhanced public notice of and access to accurate tax lien information in a manner that is more efficient, more timely, and less burdensome than the existing tax lien filing system; which would expedite the release of liens; and which would be less expensive for both taxpayers and users.

(b)

Purpose

The purpose of this Act is to simplify and modernize the process for filing notices of Federal tax liens, to improve public access to tax lien information, and to save taxpayer dollars by establishing a nationwide, Internet accessible, and fully searchable filing system for Federal tax liens which would replace the current system of local tax lien filings.

3.

National tax lien filing system

(a)

Filing of notice of lien

Subsection (f) of section 6323 of the Internal Revenue Code of 1986 is amended to read as follows:

(f)

Filing of notice; form

(1)

Filing of notice

The notice referred to in subsection (a) shall be filed in the Federal tax lien registry operated under subsection (k). The filing of a notice of lien, or a certificate of release, discharge, subordination, or nonattachment of lien, or a notice of withdrawal of a notice of lien, in the Federal tax lien registry shall be effective for purposes of determining lien priority regardless of the nature or location of the property interest to which the lien attaches.

(2)

Form

The form and content of the notice referred to in subsection (a) shall be prescribed by the Secretary. Such notice shall be valid notwithstanding any other provision of law regarding the form or content of a notice of lien.

(3)

Other national filing systems

Once the Federal tax lien registry is operational under subsection (k), the filing of a notice of lien shall be governed by this title and shall not be subject to any other Federal law establishing a place or places for the filing of liens or encumbrances under a national filing system.

.

(b)

Refiling of notice

Paragraph (2) of section 6323(g) of the Internal Revenue Code of 1986 is amended to read as follows:

(2)

Refiling

A notice of lien may be refiled in the Federal tax lien registry operated under subsection (k).

.

(c)

Release of tax liens or discharge of property

(1)

In general

Section 6325(a) of the Internal Revenue Code of 1986 is amended by inserting , and shall cause the certificate of release to be filed in the Federal tax lien registry operated under section 6323(k), after internal revenue tax.

(2)

Release of tax liens expedited from 30 to 20 days

Section 6325(a) of such Code is amended by striking not later than 30 days and inserting not later than 20 days.

(3)

Discharge of property from lien

Section 6325(b) of such Code is amended—

(A)

by inserting , and shall cause the certificate of discharge to be filed in the Federal tax lien registry operated under section 6323(k), after under this chapter in paragraph (1),

(B)

by inserting , and shall cause the certificate of discharge to be filed in such Federal tax lien registry, after property subject to the lien in paragraph (2),

(C)

by inserting , and shall cause the certificate of discharge to be filed in such Federal tax lien registry, after property subject to the lien in paragraph (3), and

(D)

by inserting , and shall cause the certificate of discharge of property to be filed in such Federal tax lien registry, after certificate of discharge of such property in paragraph (4).

(4)

Discharge of property from estate or gift tax lien

Section 6325(c) of such Code is amended by inserting , and shall cause the certificate of discharge to be filed in the Federal tax lien registry operated under section 6323(k), after imposed by section 6324.

(5)

Subordination of lien

Section 6325(d) of such Code is amended by inserting , and shall cause the certificate of subordination to be filed in the Federal tax lien registry operated under section 6323(k), after subject to such lien.

(6)

Nonattachment of lien

Section 6325(e) of such Code is amended by inserting , and shall cause the certificate of nonattachment to be filed in the Federal tax lien registry operated under section 6323(k), after property of such person.

(7)

Effect of certificate

Paragraphs (1) and (2)(B) of section 6325(f) of such Code are each amended by striking in the same office as the notice of lien to which it relates is filed (if such notice of lien has been filed) and inserting in the Federal tax lien registry operated under section 6323(k).

(8)

Release following administrative appeal

Section 6326(b) of such Code is amended—

(A)

by striking and shall include and insert , shall include, and

(B)

by inserting , and shall cause the certificate of release to be filed in the Federal tax lien registry operated under section 6323(k), after erroneous.

(9)

Withdrawal of notice

Section 6323(j)(1) of such Code is amended by striking at the same office as the withdrawn notice and inserting in the Federal tax lien registry operated under section 6323(k).

(10)

Conforming amendments

Section 6325 of such Code is amended by striking subsection (g) and by redesignating subsection (h) as subsection (g).

(d)

Federal tax lien registry

Section 6323 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(k)

Federal tax lien registry

(1)

In general

The Federal tax lien registry operated under this subsection shall be established and maintained by the Secretary and shall be accessible to and searchable by the public through the Internet at no cost to access or search. The registry shall identify the taxpayer to whom the Federal tax lien applies and reflect the date and time the notice of lien was filed, and shall be made searchable by, at a minimum, taxpayer name, the State of the taxpayer’s address as shown on the notice of lien, the type of tax, and the tax period. The registry shall also provide for the filing of certificates of release, discharge, subordination, and nonattachment of Federal tax liens, as authorized in sections 6325 and 6326, and may provide for publishing such other documents or information with respect to Federal tax liens as the Secretary may by regulation provide under paragraph (2)(C).

(2)

Administrative action

(A)

In general

The Secretary shall issue regulations or other guidance providing for the maintenance, reliability, accessibility, and use of the Federal tax lien registry established under paragraph (1). Such regulations or guidance shall address, among other matters, issues related to periods during which the registry may be unavailable for use due to routine maintenance or other activities.

(B)

Fees

The Secretary may charge a taxpayer's account with a reasonable filing fee for each notice of lien and each related certificate, notice, or other filing recorded in the Federal tax lien registry with respect to such taxpayer, in an amount determined by the Secretary to be sufficient to defray the costs of operating the registry. The Secretary may also charge a reasonable fee to any person who requests and receives under section 6323(d)(1) information or a certified copy of a filing in the Federal tax lien registry to defray the costs of providing such information or copies.

(C)

Filing of other items on registry

The Secretary may, by regulation, provide for the filing of items on the registry other than Federal tax liens, including criminal fine judgments under section 3613 of title 18, United States Code, and civil judgments under section 3201 of such title, if the Secretary determines that it would be useful and appropriate to do so.

.

(e)

Certified copies of information from registry

Section 6323 of the Internal Revenue Code of 1986, as amended by subsection (d), is amended by adding at the end the following new subsection:

(l)

Certified copies of information from Federal registry

The Secretary shall make available in a certificate that can be admitted into evidence in the courts of the United States without extrinsic evidence of its authenticity the following information to any person that submits a request in a form specified by the Secretary:

(1)

Whether there is on file in the Federal tax lien registry operated under subsection (k) at a date and time specified by the Secretary, but not a date earlier than 3 days before the creation of the certificate, any notice of a lien that—

(A)

designates a particular taxpayer,

(B)

has not been fully satisfied, become legally unenforceable, or been released or withdrawn, and

(C)

if the request so states, has been fully satisfied, become legally unenforceable, or been released or withdrawn, and a record of which is maintained on the registry at the time of filing of the request,

(2)

the date and time of filing of and the information provided in each notice of lien, and

(3)

if the request so states, the date and time of filing of and the information provided in each certificate of release, discharge, subordination, or non-attachment and each notice of withdrawal recorded in the registry with respect to each notice of lien.

.

(f)

Effective date; implementation of registry

(1)

Effective date

The amendments made by this section shall take effect on the date determined by the Secretary of the Treasury under paragraph (2)(E) and, except as provided in paragraph (2)(F), shall apply to notices of liens filed after such date.

(2)

Implementation of Federal tax lien registry

(A)

Pilot project

Prior to the implementation of the Federal tax lien registry under section 6323(k)(1) of the Internal Revenue Code of 1986 (as added by this section), the Secretary of the Treasury, or the Secretary's delegate, shall conduct and shall complete by not later than 2 years after the date of the enactment of this Act 1 or more pilot projects to test the accessibility, reliability, and effectiveness of the electronic systems designed to operate the registry.

(B)

GAO review

Within 3 months after the completion of such a pilot project, the Government Accountability Office shall provide a written evaluation of the project results and provide such evaluation to the Secretary of the Treasury, the Commissioner of Internal Revenue, and appropriate committees in Congress. The Secretary and Commissioner shall cooperate with, and provide information requested by, the Government Accountability Office to enable the evaluation to be completed by the date specified.

(C)

Nationwide test

Upon the completion of 1 or more such pilot projects and after making a determination that the electronic systems designed to operate the Federal tax lien registry are sufficiently accessible, reliable, and effective, the Secretary of the Treasury, or the Secretary's delegate, shall conduct a nationwide test of the Federal tax lien registry to evaluate its capabilities and functionality.

(D)

Data protection

Prior to the implementation of such registry, the Secretary of the Treasury, or the Secretary's delegate, shall take appropriate steps to—

(i)

secure and prevent tampering with the data recorded in the registry,

(ii)

review the information currently provided in public lien filings and determine whether any such information should be excluded or protected from public viewing in such registry, and

(iii)

develop a system, after consultation with the States, industry, and other interested parties, and after consideration of search criteria developed for other public filing systems including Article 9 of the Uniform Commercial Code, that will enable users of the registry, when examining tax lien information for a taxpayer with a common name, to identify through reasonable efforts the specific person to whom such tax lien relates.

(E)

Declaration of registry effective date

Upon the successful completion of a nationwide test of the Federal tax lien registry system, the Secretary of the Treasury shall determine and announce publicly a date upon which the registry shall take effect and become operational.

(F)

Orderly transition

In order to permit an orderly transition to the Federal tax lien registry, the Secretary of the Treasury may by regulation prescribe for the continued filing of notices of Federal tax liens in the offices of the States, counties, and other governmental subdivisions after the determination of an effective date under subparagraph (E) under the provisions of section 6323(f) as in effect before such effective date, for an appropriate period not to exceed 2 years after such effective date.