Can the IRS Reach Assets in Land Trusts?

Can the IRS reach an interest in real property held in a land trust? If so, what happens if the taxpayer sells the property? Can the IRS recoup the land from the new buyer or is the IRS limited to the proceeds received? The court addresses this in United States v. Harold, No. 2:18-cv-10223 (S.D.…Continue readingCan the IRS Reach Assets in Land Trusts?

Getting the IRS to Pay Your Attorney’s Fees

The IRS is required to pay a taxpayers attorney’s fees for defending unsupportable positions. This can even include attorney’s fees when the matter is settled administratively before court. But the IRS is not required to pay attorney’s fees if the IRS’s position is substantially justified. The Bontranger v. Commissioner, T.C. Memo. 2019-45, helps clarify how…Continue readingGetting the IRS to Pay Your Attorney’s Fees

Designating Proceeds from Sale of Property Subject to IRS Lien

If a taxpayer wants to sell property subject to an IRS lien and the IRS agrees to allow the sale, can the taxpayer designate what tax period the proceeds paid to the IRS from the sale are to be applied? The IRS attorneys address this in CCA 201916009. Facts in CCA 201916009 In CCA 201916009,…Continue readingDesignating Proceeds from Sale of Property Subject to IRS Lien

The Limits of the IRS’s Levy

If the IRS issued a levy notice to a third party to attempt to collect a tax debt, the third party is generally obligated to pay over to the IRS any money owed to the taxpayer. But how long does this obligation continue? Does it apply to future payments that the third party becomes indebted…Continue readingThe Limits of the IRS’s Levy

IRS Can Collect from Property Purchased in Corporation

Can a taxpayer put property beyond the IRS’s reach by purchasing the property in the name of a corporation or a third party?  The answer is typically “no.”  The recent Arlin Geophysical Co. v. United States, No. 2:08-cv-00414-DN-EJF (C.D. Utah 2018) provides an example. Facts & Procedural History The court case involves an individual who…Continue readingIRS Can Collect from Property Purchased in Corporation

Family Member’s Mortgage Filing May Trump IRS Lien

If a child owes unpaid taxes to the IRS, can the parent file a lien against the child’s property to prevent the IRS from levying on the property?  The court considered this in United States v. Allahyari, No. C17-668 TSZ (W.D. Wash. 2018). The Facts & Procedural History Upon graduating from law school in the early…Continue readingFamily Member’s Mortgage Filing May Trump IRS Lien

Agreeing to an IRS Real Estate Foreclosure Sale

Can you ask the IRS to take real estate to satisfy your unpaid tax liability?  The answer is “yes,” but it usually not the best option.  The recent order in United States v. Leroy, No. 2:18-cv-01777-MCE-DB (E.D. Cali. 2018) provides an example of this. The Facts & Procedural History Ms. Leroy owed $177,653.70 in unpaid taxes…Continue readingAgreeing to an IRS Real Estate Foreclosure Sale

Dormant IRS Levy Precludes Wrongful Levy Suit, IRS Wins

What happens if the IRS issues a levy to someone who does not owe taxes to the IRS, but the IRS does not receive anything from the levy.  The levy sits dormant for several years.  Everything is good, right?  But then the third party pays the IRS.  Can the person’s right to challenge the levy…Continue readingDormant IRS Levy Precludes Wrongful Levy Suit, IRS Wins

Avoiding an IRS Wage Levy by Change to Contractor Status

Can you avoid an IRS wage levy by having your employer change your status from that of an employee to a contractor?  The court addressed this in Hudiak vs. United States, No. MJG-11-1271 (D. Md. 2018) by ordering the taxpayer to make installment payments to the IRS despite the change in employment status. The Facts &…Continue readingAvoiding an IRS Wage Levy by Change to Contractor Status

Can the IRS Take Property Purchased in a Business Name?

If you owe the IRS back taxes but want to buy real estate or some other type of property, can you form a legal entity and use it to acquire property and thereby put the property is beyond the IRS’s reach? The court recently addressed this in United States v. Jones, No. 8:17-cv-2389-T-24 AEP (M.D.…Continue readingCan the IRS Take Property Purchased in a Business Name?