IRS Memorandum Tackles Season Ticket Holders

June 9, 2009 The Legal Intelligencer

© 2009, The Legal Intelligencer.

In a recent legal memorandum - LAFA 20092102F - the Internal Revenue Service addressed the quirky issue of whether a personal seat license and the related right to purchase season tickets for a professional sport team constituted "property or the right to property" subject to seizure and sale by the IRS. In the memorandum, the IRS concluded that the personal seat license is property subject to seizure and sale but that the renewal right to the season tickets is not a property right subject to seizure or sale.

When a taxpayer fails to pay a tax liability after notice and demand, Section 6321 of the Internal Revenue Code provides that a lien thereafter arises that attaches to all of the taxpayer's property and rights to property. The regulations provide that for this purpose, property and rights to property include all property, "whether real or personal, tangible or intangible" belonging to the taxpayer. Once a lien attaches, Section 6331 of the code further provides that the IRS is authorized to seize and sell the taxpayer's property and rights to property subject to the lien in satisfaction of the taxpayer's obligation.

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