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IRS Debts IRS Liens & Levies Tax Procedure

Court Invalidates Process to Challenge IRS Levy

If the IRS fails to mail or mails a required collection notice to a taxpayer using the wrong address, should the taxpayer be able to get a court ruling invalidating the IRS’s subsequent collection efforts?  The court addresses this in Adolphson v. Commissioner, No. 15-2242 (7th Cir. 2016). Facts & Procedural History The IRS “issued” a […]

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IRS Debts IRS Liens & Levies Tax Procedure

IRS Wage and Salary Levy Exemptions for 2017

The IRS recently issued Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income – Forms 668-W(ACS), 668-W(c)(DO) and 668-W(ICS), for 2017.  This publication provides the amount of wage and salary that are exempt from the IRS’s levy. The monthly wage and salary amounts for 2017 are as follows: Exemptions […]

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IRS Debts IRS Liens & Levies Tax Procedure

TIGTA Review of the IRS’s Practices in Levying on Social Security Payments

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 […]

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IRS Audits Tax Procedure

IRS Tax Assessment Overturned Because Notice Not Property Mailed

In Buffano v. United States, T.C. Memo. 2016-122, the U.S. Tax Court concluded that that the taxpayer was not liable for tax because the IRS failed to properly assess the tax because the IRS did not mail notices of the tax deficiencies to the taxpayer’s last known address. This case is a good example of […]

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IRS Debts IRS Liens & Levies Tax Procedure

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  […]

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IRS Debts IRS Liens & Levies Tax Procedure

IRS Levy on Stocks, IRS Has to Credit Taxpayers for Loss

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. In Zapara v. Commissioner, 126 T.C. 215 (2005), aff’d, 652 F.3d 1042 (9th Cir. 2011), the U.S. Tax Court ordered the IRS to credit $47,501.06 to the taxpayer for the […]

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IRS Debts IRS Liens & Levies Tax Procedure

New IRS Collection Tool: 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 […]