The IRS has the power to levy on or take a taxpayer’s property. This includes nearly all property, including Social Security payments. The Treasury Inspector General for Tax Administration (TIGTA), the agency that audits the IRS, recently released a report that examined the IRS’s practices in levying on Social Security payments. Social Security Payments TIGTA’s… Continue reading TIGTA Review of the IRS’s Practices in Levying on Social Security Payments
Category: IRS Liens & Levies
Unperfected Loan Trumped IRS Lien
The IRS has broad collection powers. But its collection powers are not unlimited. The recent U.S. v. Heptner, Case No. 8:15-cv-1125-T-33MAP (Dist. Fla. 2016) case provides an example. Facts & Procedural History Heptner practiced law from 1984-2001. After being disbarred, he was employed as a legal advisor and in-house counsel by Damien Freeman, an entrepreneur,… Continue reading Unperfected Loan Trumped IRS Lien
IRS Tax Lien Did Not Attach to Trust Property
In Duckett v. Enomoto, Dkt No. 2:14-cv-01771, the U.S. District Court in Arizona concluded that a Federal tax lien for taxes owed by a trust beneficiary did not attach to the entire trust. This issue often comes up in IRS collection cases where the taxpayer is the beneficiary of a trust. Facts & Procedural History … Continue reading IRS Tax Lien Did Not Attach to Trust Property
Court Says Tax Lien Does Not Have to Be Filed Prior to Entering Into an Installment Agreement
In Budish v. Commissioner, T.C. Memo. 2014-239, the U.S. Tax Court held that the IRS erred in insisting on a tax lien being filed before it would accept an installment agreement. This case serves as a reminder that a tax lien does not have to be filed if it creates a hardship that would make… Continue reading Court Says Tax Lien Does Not Have to Be Filed Prior to Entering Into an Installment Agreement
IRS Notice of Intent to Levy Sustained Despite IRS Not Following Its Procedures
In Eichler v. Commissioner, 143 T.C. 2, the U.S. Tax Court said that the IRS Notice of Intent to Levy was proper even though the IRS failed to follow its policy to check an installment request into its system which would have stopped IRS collection actions. Facts & Procedural History The IRS assessed Section 6672… Continue reading IRS Notice of Intent to Levy Sustained Despite IRS Not Following Its Procedures
IRS Liable for Stock Loss After Levy
When the IRS levies or takes property from the taxpayer, the taxpayer has the right to request that the property be sold within 60 days. This rule applies to more than just stocks. It also applies to cryptocurrency, for example. In Zapara v. Commissioner, 126 T.C. 215 (2005), aff’d, 652 F.3d 1042 (9th Cir. 2011),… Continue reading IRS Liable for Stock Loss After Levy
Offer in Compromise: Documenting the Value of Assets
The IRS carefully examines the value of the taxpayer’s assets when it considers whether to accept an offer in compromise based on doubt as to collectiblity. Even a few dollars can result in a rejected offer. Substantiation is key. The Wright v. Commissioner, T.C. Memo. 2008-259, case is an example. It involves a $2,000 offer… Continue reading Offer in Compromise: Documenting the Value of Assets
The Disqualified Employment Tax Levy
The IRS is generally required to give taxpayers notice of its intent to levy (or take) their property prior to it actually levying on the property. Congress recently amended the Code to provide the IRS with a new type of tax levy. This new levy is referred to as a “disqualified employment tax levy” and… Continue reading The Disqualified Employment Tax Levy
New IRS Tax Lien Regulations Issued
The dreaded IRS tax lien. Once filed, it can wreak havoc on credit scores. It can call into question occupational licenses. Worse yet, it triggers a flood of mail and phone calls from tax resolution companies hawking their services. About Liens and IRS Liens A tax lien is a claim to property. Think of it… Continue reading New IRS Tax Lien Regulations Issued
Tax Liability Review by Tax Court Limited
The collection due process hearing law has provided taxpayers with another avenue for challenging their underlying tax liabilities. With this option, taxpayers can let the IRS assess the additional tax or penalties and then wait for the IRS to attempt enforced collection for the balance. They can then file a collection due process hearing request… Continue reading Tax Liability Review by Tax Court Limited