5.12.8. Notice of Lien Refiling

(1) The statutory lien arises with a taxpayer's failure to pay their tax liability after demand. If no lien notice is filed, the duration of the statutory lien is dependent solely on whether the statute to collect the tax liability remains open.

(2) Once a lien notice is filed, the statutory lien has a certain dependence on the notice. While it remains true that the statutory lien is always extinguished when the liability is satisfied or the period to collect expires, the statutory lien can also be released through the self-releasing language on the NFTL. The self-releasing language can be triggered even if the collection period has been extended or suspended.

(3) The reason for the self-releasing statement is to ensure that the law is met which requires a notification to creditors that the notice is no longer valid because the statutory lien has been released. IRC 6325 requires the Service to issue a release of lien not later than 30 days after the day on which the liability for the amount assessed has become legally unenforceable (or when such liability has been fully paid). When the Collection Statute Expiration Date (CSED) expires, the liability becomes legally unenforceable. Since a release statement must be made within 30 days of the tax liability becoming unenforceable, Form 668(Y)(c) is specifically designed to contain a trigger for the self-releasing statement and the trigger coincides with original CSED. This saves the Service from having to devote resources to manually releasing liens and lien notices when the CSED expires.

(4) The trigger on the notice is found in column "e". The last day for refiling ("refile by" date) is the date in column "e" of the NFTL.

(5) When a column "e" date triggers the self-releasing statement, both the statutory lien and the lien notice are released even if the collection statute remains open.

(6) For the majority of lien notices which have not been paid or satisfied prior to the expiration of the original CSED, the self-releasing language allows the Service a cost-effective way to fulfill its legal obligation to ensure that the public knows the lien and lien notice have been released.

(7) When there is a need to continue the statutory lien and NFTL, the Form 668F is used to notify creditors that both the statutory lien and original NFTL continue in full force. However, a refile can only occur when a tax liability remains open and collectible because the CSED has been extended or suspended. Likewise, a release occurring where the CSED remains open and collection actions are proceeding will negatively impact those actions due to the release of the lien notice and statutory lien.

(8) Even though a CSED remains open, a continuation of the statutory lien and lien notice is not required. The decision to refile is based on the circumstances of the case.

(9) The first time a lien notice is refiled, the Service has 30 days beyond the original CSED to accomplish the task of refiling.

(10) Once a lien notice has been refiled the first time, any subsequent refile period calculation and the new CSED (suspended or extended) calculation follow different rules. Since the subsequent refile period and CSED calculations differ, it becomes important to separately track both the end of the new CSED and the end of the refile period. Even if the period for refiling a notice is open, if the CSED expires, then the IRS is required to release the statutory lien and any associated notices within 30 days of the CSED expiration.

(1) CSED: The collection statute expiration date is the date by which the Service must collect the debt owed or the authority to collect the debt expires (See IRM 5.1.19, Collection Statute Expiration). The CSED period is normally ten (10) years unless it has been extended or suspended such as by submitting an Offer in Compromise (see IRM 5.8.1, Offer In Compromise, Overview) or filing bankruptcy (see IRM 5.9.1, Overview of Bankruptcy). Other situations that can trigger a CSED extension or suspension are identified in IRM 5.1.19, Field Collecting Procedures - Collection Statute Expiration.

(2) Refile: A lien notice refile is a renewal or continuation of both the statutory lien and lien notice. Action to refile can only be taken if the CSED has been extended or suspended. However, refiling is not needed for all cases in which the CSED has been extended or suspended. A refile determination is needed.

(3) Refile Period: The year long time-frame during which the law allows a lien notice to be refiled by the Service. There are two types of refile periods.

1. First Refile Period: The year long original refile period which starts nine years and 30 days after the original assessment date and ends ten years and 30 days after the original assessment date. (IRC § 6323(g)(3)(A))

2. Subsequent Refile Period: The year long period starting nine years after the end of the previous refile period and ending ten years after the end of the previous refile period. (IRC § 6323(g)(3)(B))

(4) "Refile By" Date: is the date by which a notice of lien must be refiled in order to meet the legal requirements and preserve both the statutory lien and original lien notice. This date is distinct and different from the CSED, which is when the liability is deemed unenforceable. Generally these two date computations run concurrently but will not if the CSED has been extended or suspended.

(1) IRC § 6323(g) and Treasury Regulation § 301.6323(g)-1 contain the legal instructions, definitions, requirements, and regulations related to refiling lien notices.

(2) The effect of refiling the notice is to continue both the statutory lien and lien notice. Refiling preserves the respective date with which the statutory lien and lien notice compete with other creditors.

(3) The effect of failure to refile is to extinguish the statutory lien (if the notice contains a self-releasing statement) and invalidate the lien notice.

(4) Since there is only one statutory lien but that statutory lien may be reflected on numerous lien notices, for a refile to be effective in continuing the statutory lien, every notice listing that statutory lien must be refiled. If the statutory lien is inadvertently released all notices associated with that statutory lien become invalid as of the date of the release. When this occurs and a statutory lien and notice are still needed, the statutory lien must be repaired first through revocation of the release before any notice can again be filed.

(5) IRC 6323(g)(3) controls the refile status even if the NFTL column "e" is left blank or contains an N/A.

(1) Any original NFTL will contain a date in column e of Form 668(Y)(c) which is ten years and 30 days after the original assessment date. A lien notice must be refiled on or before that date.

(2) A refiled NFTL will contain a date in column e which is ten years after the expiration of the previous refile period. Past practice has been to put nothing or NA in the Form 668F column e. The date in column e for any refile should be a date ten years after the expiration of the previous refile period. If at all possible the refile notice should reflect the correct "refile by" date.

(3) The life of the refiled notice is set by law and will not change even if there is no date or an N/A in column e. The notice's validity is controlled by IRC § 6323(g).

(4) Form 668(F) does not contain a self-release statement but the statutory lien will expire with the CSED so it is imperative that any lien notice (refile or other) which does not contain a self-releasing statement and trigger for that statement, must be monitored and released within 30 days of the CSED in compliance with IRC § 6325. ALS is systemically notified when a CSED expires and the module goes into status 12. This should release the refile appropriately but the Service remains responsible to ensure that the release occurs timely.

(1) In rare situations NFTLs are filed, for the first time, at a date later than the original CSED. These types of lien notices are called "NFTLs after original CSEDs" or NAOCs.

(2) Refiling an NAOCs follows the IRC 6323(g)(3)(B) rule.

(3) If there are difficulties using ICS when requesting the refile of an NAOC or if the refile NAOC request is being sent to CLO for processing, use Form 12636 to request CLO input the NAOC refile directly into ALS. Prior to completing the Form 12636, alert CLO that an unusual request is being forwarded. Flag the Form 12636 as a NAOC refile request.

(4) See IRM 5.12.7.7.2 for more information about filing NAOC.

(1) Without access to ALS: The Centralized Lien Operation (CLO) will input refiles through ALS upon request.

1. Submit request to CLO on Form 12636Request for Filing or Refiling Notice of Federal Tax Lien.

2. Form 12636 must include all information that needs to be updated, i.e., dollar amount, address, CSED.

3. It is essential to show the updated CSED for each period to be refiled so that the correct CSED may be input to ALS. If the CSED is in suspense due to litigation, the CSED field of Form 12636 should show all asterisks (**/**/****) or a future date (e.g., CSED plus 20 years). The CSED will update on ALS once the suspense status is resolved. Do not put N/A in the CSED field of Form 12636.

4. Requests should be sent to CLO via secure email.

   Reminder: Allow for process time in CLO and mailing time when refiling NFTL at the end of a refile period otherwise the refile may not be filed timely.

(2) With access to ALS: follow the instructions in the ALS User Guide Chapter 10.

(1) At times, circumstances may exist that do not allow time for a refiled NFTL to be created, printed, and processed through ALS. In these cases prepare the refile using Form 668F from the Publishing catalog. ICS NFTL template cannot be used.

(2) A refile SLID must be generated by ALS. It cannot be generated by ICS and it cannot be made-up. Use Form 12636 to contact CLO for a SLID. Inform them that the refile is being prepared outside of ALS and provide CLO the reason the refile notice is being prepared outside of ALS so they can include that in an ALS history item.

(3) On the PDF enter the information as follows:

1. Enter the SLID from the original NFTL in the Serial Number Recorded field

2. Enter 1-800-913-6050 (CLO's number) in Lien Unit Phone field

3. Enter the Area where the notice is being prepared in the Area Field

4. Enter the taxpayer's name and address from the original NFTL

5. Enter in columns a, b, c, d the information from the original NFTL

6. Enter in column e next refile expiration date. (SeeIRM 5.12.8.3.1 paragraph two (2) for an example of a subsequent refile period deadline as well as IRM 5.12.8.2.2 for the definition.)

7. Enter in column f the updated Unpaid Balance of Assessment (UBA)
   

8. For the Notice of Federal Tax Lien Refiling box in the:
   (1) Serial Number field enter the SLID assigned by ALS for the refile
   (2) Notice Filed at field enter the Recording Office where the Form 668F will be filed
   (3) New TP name/TIN/address fields enter only "new" information. If the information from the original NFTL is still current, then these fields will be left empty.
   (4) Signature for field enter the name and phone number of the person filing the Form 668F. Then sign (signature must be someone with delegated authority - see Delegation Order 5-4 in IRM 1.2.44.5) for lien delegations.
   (5) Title field enter the title of the person signing the Form 668F
   (6) Date field enter the date the Form 668F is prepared.
   

9. Enter in the Place of Filing field the recording office as it appeared on the original NFTL

10. Enter in the Total field the total of the amount(s) listed in column f.

11. The remaining information fields are completed using the information from the original NFTL.

(4) If there is a question about a deviation from any of the above instructions, contact Advisory and/or Area Counsel for instructions.

(5) Secure email CLO a copy of the filed Refile lien notice including the recording information.

(1) The refile lien notice should always reflect the taxpayer's current address.

(2) A notice of change of a taxpayer’s residence will be effective if it is received:

1. In writing from the taxpayer or his/her representative. Form 8822, Change of Address states the taxpayer’s name and the address of the new residence. Process the Form 8822 to ensure that MF reflects the new address.

2. Through the National Change of Address database.

3. In a return or amended return of the same type of tax filed with the Internal Revenue Service by the taxpayer. The return or amended return must indicate that it is a change of address and correctly state the taxpayer’s name, address of present residence and identification number required by IRC § 6109.

(3)

(4) Other than the means specified above, no communication, either written or oral, will be considered as notice of a change of a taxpayer’s residence.

(1) During the required refiling period, the NFTL is to be refiled in all cases in every office in which a prior NFTL (including a refiled notice) was filed. This refiling in all locations is extremely important for both real and personal property. If the refiling is not accomplished as and when required, all other NFTL and refiled NFTL are ineffective.

(2) IRM 5.12.7 Exhibit 2 contains the list of State Filing Locations.

(3) When a CSED has been or will be extended or suspended,