Opinion
1357-21L
04-14-2022
SUSAN M. LAFERRERA, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
DAVID GUSTAFSON JUDGE
In this collection due process ("CDP") case, the Commissioner determined that petitioner Susan M. LaFerrera did not owe the liability that had been assessed against her and that was the occasion for the notice of lien filed against her. The Commissioner therefore arranged for the liability to be abated and for the lien to be "released" pursuant to section 6325. When those acts had been accomplished, the Commissioner filed a motion to dismiss the case on grounds of mootness. We ordered Ms. LaFerrera to file a response, and in lieu of a written response so she initiated a telephone conference among the parties and the judge, in order to explain her position. We held that phone conference on April 14, 2022, and she explained that it appears that when inquiry is made to the local office where lien records are maintained, the inquirer is told that the lien has been "satisfied". She is concerned that this creates an inaccurate impression that she paid a liability late (and had left it unpaid for some period of time). She stated that she has communicated with a bank about refinancing a mortgage on her house, and that the bank told her that the "satisfied" lien might be a negative issue in their entertaining an application for refinancing.
Counsel for the Commissioner agreed to investigate the possibility of obtaining a "withdrawal" of the lien pursuant to section 6323(j) and/or providing to Ms. LaFerrera, for her use in addressing creditors' concerns, a notice pursuant to section 6323(j)(2) (or an equivalent document). It is
ORDERED that the Commissioner's motion (Doc. 10) to dismiss on grounds of mootness remains pending, but that our order (Doc. 11) requiring Ms. LaFerrera to file a written response to the motion is vacated. It is further
ORDERED that, no later than May 16, 2022, the parties shall file a status report, or another appropriate filing, that shall include information on the efforts by counsel for the Commissioner to obtain a "withdrawal" and a notice or other document. The parties are encouraged to cooperate with one another in working out the best remedy available to address Mr. LaFerrera's concerns.