Release number 200927019 of 2009-07-02

• Date: 02 July 2009
• Year: 2009
• Record Number: 200927019
• UILC Number: 6331.00-00,223.00-00

Office of Chief Counsel

Internal Revenue Service

Memorandum

Number: 200927019

Release Date: 7/2/2009

CC:PA:04: -----------

GL-108088-09

UILC: 6331.00-00, 223.00-00

date:May 01, 2009

to:Robert D. Heitmeyer

Associate Area Counsel (Detroit)

(Small Business/Self-Employed)

from:Nancy Galib

Senior Technician Reviewer

(Procedure & Administration)

subject:Health Savings Accounts -Ability to Levy

This Chief Counsel Advice responds to your request for assistance dated March 12,

2009. This advice may not be used or cited as precedent.

ISSUES

Whether the Service’s levy under section 6331 of the Internal Revenue Code attaches

to a taxpayer’s Health Savings Account (HSA) established pursuant to section 223 and,

if so, whether levy on an HSA results in the additional 10 percent tax liability imposed by

section 223(f)(4)(A).

CONCLUSIONS

A levy extends to a taxpayer’s interest in an HSA. A taxpayer is liable for the additional

10 percent tax on the amount of levy unless, at the time of levy, the taxpayer had

attained the age of 65 or was disabled (as defined in section 72(m)(7)).

LAW AND ANALYSIS

If a person neglects or refuses to pay a tax liability, section 6331 provides that the

Service may levy “upon all property and rights to property” of the taxpayer except

property that is exempted from levy under section 6334. An HSA is a “trust created or

organized in the United States as a health savings account exclusively for the purpose