PUBLIC LAW 109–432—DEC. 20, 2006
120 STAT. 2961
‘‘(i) is based on a position which the Secretary has identified as frivolous under subsection (c), or ‘‘(ii) reflects a desire to delay or impede the administration of Federal tax laws. ‘‘(B) SPECIFIED SUBMISSION.—The term ‘specified submission’ means— ‘‘(i) a request for a hearing under— ‘‘(I) section 6320 (relating to notice and opportunity for hearing upon filing of notice of lien), or ‘‘(II) section 6330 (relating to notice and opportunity for hearing before levy), and ‘‘(ii) an application under— ‘‘(I) section 6159 (relating to agreements for payment of tax liability in installments), ‘‘(II) section 7122 (relating to compromises), or ‘‘(III) section 7811 (relating to taxpayer assistance orders). ‘‘(3) OPPORTUNITY TO WITHDRAW SUBMISSION.—If the Secretary provides a person with notice that a submission is a specified frivolous submission and such person withdraws such submission within 30 days after such notice, the penalty imposed under paragraph (1) shall not apply with respect to such submission. ‘‘(c) LISTING OF FRIVOLOUS POSITIONS.—The Secretary shall prescribe (and periodically revise) a list of positions which the Secretary has identified as being frivolous for purposes of this subsection. The Secretary shall not include in such list any position that the Secretary determines meets the requirement of section 6662(d)(2)(B)(ii)(II). ‘‘(d) REDUCTION OF PENALTY.—The Secretary may reduce the amount of any penalty imposed under this section if the Secretary determines that such reduction would promote compliance with and administration of the Federal tax laws. ‘‘(e) PENALTIES IN ADDITION TO OTHER PENALTIES.—The penalties imposed by this section shall be in addition to any other penalty provided by law.’’. (b) TREATMENT OF FRIVOLOUS REQUESTS FOR HEARINGS BEFORE LEVY.— (1) FRIVOLOUS REQUESTS DISREGARDED.—Section 6330 (relating to notice and opportunity for hearing before levy) is amended by adding at the end the following new subsection: ‘‘(g) FRIVOLOUS REQUESTS FOR HEARING, ETC.—Notwithstanding any other provision of this section, if the Secretary determines that any portion of a request for a hearing under this section or section 6320 meets the requirement of clause (i) or (ii) of section 6702(b)(2)(A), then the Secretary may treat such portion as if it were never submitted and such portion shall not be subject to any further administrative or judicial review.’’. (2) PRECLUSION FROM RAISING FRIVOLOUS ISSUES AT HEARING.—Section 6330(c)(4) is amended— (A) by striking ‘‘(A)’’ and inserting ‘‘(A)(i)’’; (B) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’; (C) by striking the period at the end of the first sentence and inserting ‘‘; or’’; and
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