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Ezel / IRS Rulings / 201933011
Chief Counsel Advice 201933011 Released August 16, 2019 Advice

Third party must use the statutory lien-discharge remedy

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This page covers one taxpayer's ruling from 2019, which can't be cited as precedent. Ezel answers your situation under the current Code and IRS guidance, with citations.

Currency note: this determination was released in 2019
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised that a third party paying another person’s tax liability must use the remedies under sections 6325(b)(4) and 7426(a)(4). Those provisions superseded the refund-suit route recognized in United States v. Williams. The statutory remedy applies whether or not the third party requests and receives a certificate discharging the property from the federal tax lien. The advice follows Revenue Ruling 2005-50.

Ruling snapshot

  • Question: What remedy applies when a third party pays another person’s tax liability in connection with a federal tax lien?
  • Outcome: advice given that sections 6325(b)(4) and 7426(a)(4) provide the required remedy
  • Key authorities: IRC §§ 6325(b)(4), 7426(a)(4); Rev. Rul. 2005-50; United States v. Williams

Full text (IRS public release)

ID:      CCA_2019061711571752
UILC:    6325.03-00

Number: 201933011
Release Date: 8/16/2019
From:
Sent: Monday, June 17, 2019 11:57:17 AM
To:
Cc:
Bcc:
Subject: RE: Equitable Subrogation -sec 6323- coordination


Good afternoon.

As stated previously, it is our position that sections 6325(b)(4) and 7426(a)(4) apply
under your facts. These provisions supersede United States v. Williams, 514 US 527
(1995), and third parties, after the enactment of the provisions, cannot pay another’s
liability and then sue for refund. Rather, they must use the remedy provided by the
provisions. While there are peculiarities in the wording of the Code provisions, they
apply whether or not the third party seeks and obtains a discharge. See, e.g., CCA
201012036, which also provides some background on Williams and the enactment of
the provisions. The advice we gave you reflects the position taken in Rev. Rul. 2005-
50, which we continue to follow.

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