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…
Category: IRS Liens & Levies
IRS Liens & Levies
The IRS’s legal right to seize a taxpayer’s property or place a lien on their property to satisfy unpaid tax debts. Give us a call to see how we can help, (713) 909-4906.
Fix to Duplicate IRS Address Problem
The IRS sends taxpayers letters and notices from quite a few different IRS offices. As a result, taxpayers are often confused as to what IRS office to respond to. This is particularly true if the IRS letter or notice includes more than one IRS address. The IRS has maintained a harsh stance on taxpayers who…
IRS Levy Does Not Attach to Future Payments
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
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
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
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
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
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,…
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 …
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…