Justice Manual § 6-5.330

Notice to Tax Division and IRS. In § 2410 actions that fall within the responsibility of the United States Attorney, the United States Attorney should ask the appropriate local IRS counsel to provide the information necessary to prepare an answer. The United States Attorney need not forward the summons and complaint to the Tax Division, or correspond with the Tax Division about these cases at all, unless a party submits a settlement offer, an appellate issue arises, or case assistance is needed. Please direct any questions to the Chief of the appropriate Civil Trial Section.

Settlement Offer. A settlement offer that is made in a case being handled by the United States Attorney’s Office should be promptly submitted to the Chief of the appropriate Civil Trial Section, with the United States Attorney’s Office’s recommendation and sufficient supporting data. At the same time, the United States Attorney’s Office should forward a copy of the settlement offer, together with a copy of the complaint, to the local IRS counsel. See Tax Division Directive 139, located in 28 C.F.R. Pt. O, Subpt. Y, App., “Redelegation of Authority to Compromise and Close Civil Claims.” This procedure does not apply to applications for release of the Government’s right to redemption for which, in certain cases, the Tax Division has delegated authority to the United States Attorney’s Office. See Tax Division Directive 83, located in 28 C.F.R. Pt. O, Subpt. Y, App., “Redelegation of Authority to Release Rights of Redemption in Certain Cases” (discussed at JM 6-6.700).

Appeal. If another party to the proceeding takes an appeal, the United States Attorney’s Office should promptly advise the Chief of the appropriate Civil Trial Section and explain the applicable time limitation. If a court renders a decision adverse to the Government on an issue that the United States Attorney’s Office has contested, the United States Attorney’s Office should submit an appeal recommendation with sufficient information to enable the Tax Division to evaluate the appropriateness of appeal. Until the Department makes a final decision regarding whether the Government should appeal, the United States Attorney’s Office should take all necessary steps to protect the Government's interest, including filing a notice of appeal and preparing the record on appeal.

Lien Priority. The priority of the federal tax lien is governed by section 6323 of the Internal Revenue Code (26 U.S.C.) in most § 2410 cases. Should any interpretative problems arise concerning the priority accorded to the tax lien, the United States Attorney’s Office should contact the Chief of the appropriate Civil Trial Section or the local IRS counsel.

Closing. The United States Attorney’s Office should notify the appropriate local IRS counsel when a case is closed.