IRS Lien on Trust Assets

Irs Lien On Trust Assets

As long as the government tries to collect taxes, there will be taxpayers who try to find ways to not pay the taxes. These tax payment avoidance options often involve co-ownership of property or, in many cases, trusts. The recent United States v. Simones, No. 1:20-cv-00795-PJK-SCY (D.N.M. 2021) case shows how the IRS is able…

The Contract for Deed Can Avoid IRS Liens

The Contract For Deed Can Avoid Irs Liens

The contract for deed can provide a way to transfer ownership of property to someone who owes back taxes to the IRS, while preserving the right to avoid the IRS lien and IRS foreclosure. Real estate investors and those doing real estate deals may prefer these sales as they can often be made at higher…

Property Rights & IRS Levies: Louisiana’s Usufruct

Property Rights & Irs Levies: Louisiana’s Usufruct

To determine whether the IRS can levy or take property, one has to consider what property the taxpayer owns. State law dictates what property the taxpayer owns. The property laws in most states are similar, which makes applying Federal tax collection law relatively easy. But then there is Louisiana law. Louisiana law differs in many…

IRS Levy Does Not Attach to Future Payments

Avoiding Hobby Loss Limits For Long-term Projects

The IRS levy is one of the IRS’s primary methods for collecting unpaid taxes. The IRS’s levy power is broad, but it is not unlimited. The IRS levy can attach to some amounts held by third parties that are owed to the taxpayer. It does not attach to future payments. The recent Gold Forever Music…

Transferring Property to a Spouse After IRS Lien

Credit For Employment Taxes Reported In Error For Another Entity

There are a number of difficult questions that come up when one spouse has a debt with the IRS and also owns property jointly with their spouse. The question is often whether the spouses can transfer the property to the non-liable spouse. The answer is, maybe. The court recently addressed this in U.S. v. Gerard,…

Court Invalidates Process to Challenge IRS Levy

Tax Court Expands Innocent Spouse Relief For Divorced Taxpayers

If the IRS fails to mail a collection notice to the taxpayer or if it 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?  Congress added several notice requirements to help protect taxpayers from unlawful IRS…

IRS Wage and Salary Levy Exemptions for 2017

Tax Court Expands Innocent Spouse Relief For Divorced Taxpayers

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…

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

Real Estate Professionals Subject To Material Participation Rules

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…

Unperfected Loan Trumped IRS Lien

New Evidence Not In Record Can Be Considered By Court

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,…