HEARINGS BEFORE THE COMMITTEE ON WAYS AND MEANS HOUSE OF REPRESENTATIVES EIGHTY-NINTH CONGRESS SECOND SESSION ON H.R. 11256 and H.R. 11290 TO AMEND THE INTERNAL REVENUE CODE OF 1954 WITH RESPECT TO THE RELATIVE PRIORITY AND EFFECT OF FEDERAL TAX LIENS AND LEVIES OVER THE INTEREST OF OTHER CREDITORS MARCH 2, 1966 Printed for use of the Committee on Ways and Means U.S. GOVERNMENT PRINTING OFFICE Press release dated February 11, 1966, announcing 1-day public hearing on H.R. 11256 (Mills) and H.R. 11290 (Byrnes of Wisconsin), bills to amend the Internal Revenue Code with respect to the priority and effect of Federal tax liens and levies____ H.R. 11256 (Mills), a bill to amend the Internal Revenue Code of 1954 with respect to the priority and effect of Federal tax liens and levies, and H.R. 11290 (Byrnes of Wisconsin), a bill to amend the Internal Revenue Code of 1954 with respect to the priority and effect of Federal tax liens and levies, and for other purposes.. STATEMENT FOR THE RECORD BY GOVERNMENT OFFICIAL Treasury Department, Hon. Stanley S. Surrey, Assistant Secretary of the American Insurance Association, David Q. Cohen, counsel.. Cohen, David Q., counsel, American Insurance Association.. Johnson, Kenneth H., vice president and general counsel, Bank of America, San Francisco, Calif., Chairman, Special Committee on Federal Tax Liens, American Bankers Association.. Williams, Laurens, chairman, Special Committee on Federal Liens, MATERIAL SUBMITTED FOR THE RECORD "American Bar Association Final Report of the Committee on Federal 75 Associated General Contractors of America, William E. Dunn, executive 239 239 242 242 233 National Association of Real Estate Boards, Alan L. Emlen, chairman, Realtors' Washington Committee, letter to Chairman Mills... National Conference of Commissioners on Uniform State Laws, William King, T. Bert, Washington counsel, United States Savings & Loan League, McKenzie, William A., president, National Conference on Commissioners on Uniform State Laws, statement... Mortgage Bankers Association of America, Samuel E. Neel, executive 236 National League of Insured Savings Associations, William F. McKenna, general counsel, letter dated March 1, 1966, to Chairman Mills... National Lumber and Building Material Dealers Association, Thomas T. Sneddon, executive vice president, statement... National Small Business Association, John A. Gosnell, general counsel, letter dated February 28, 1966, to Chairman Mills.... Neel, Samuel E., executive vice president, Mortgage Bankers Association Sneddon, Thomas T., executive vice president, National Lumber and Building Material Dealers Association, statement. United States Savings & Loan League, T. Bert King, Washington counsel, 233 WEDNESDAY, MARCH 2, 1966 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met at 10 a.m., pursuant to notice, in the committee room, Longworth House Office Building, Hon. Wilbur D. Mills (chairman of the committee) presiding. The CHAIRMAN. The committee will please be in order. The purpose of the hearing today is to receive testimony from interested public witnesses on bills to amend the Internal Revenue Code of 1954 with respect to the relative priority effect of Federal tax liens and levies over the interest of other creditors. Two bills in particular on the subject are H.R. 11256 which I introduced, and H.R. 11290, which was introduced by Mr. Byrnes, the ranking Republican member. The bills generally are identical except with respect to certain language relating to liens for withheld taxes, which is a part of section 105(a) of my bill but which is not contained in Mr. Byrne's bill. The Chair might observe that a great deal of work on this general subject has been conducted by the special committees of the American Bar Association, over a period of years, which has culminated in the bills pending before the committee. Without objection, a copy of the press release which was issued announcing these hearings will be made a part of the record at this point. (The press release referred to follows:) FEBRUARY 11, 1966. CHAIRMAN WILBUR D. MILLS, DEMOCRAT OF ARKANSAS, HOUSE COMMITTEE ON WAYS AND MEANS, ANNOUNCES 1-DAY PUBLIC HEARING ON MARCH 2, 1966, ON H.R. 11256 (MILLS) AND H.R. 11290 (BYRNES OF WISCONSIN), BILLS TO AMEND THE INTERNAL REVENUE CODE WITH RESPECT TO THE PRIORITY AND EFFECT OF FEDERAL TAX LIENS AND LEVIES Chairman Wilbur D. Mills, Democrat of Arkansas, Committee on Ways and Means, U.S. House of Representatives, today announced that the committee would conduct a 1-day public hearing on Wednesday, March 2, 1966, on H.R. 11256 (Mills) and H.R. 11290 (Byrnes of Wisconsin), bills to amend the Internal Revenue Code of 1954 with respect to the relative priority and effect of Federal tax liens and levies over the interest of other creditors. It will be recalled that the chairman and Representative Byrnes introduced these bills at the request of a subcommittee of the American Bar Association on September 24, 1965, and September 27, 1965, respectively, in order to make them available to the general public as a basis for comment and study. These bills resulted from study by a subcommittee of the American Bar Association and other interested groups, in conjunction with the Treasury Department, over an extended period of time. The bills are not identical, in one principal respect, as follows: 1 |