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… Read More
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… Read More
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?… Read More
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… Read More
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… Read More
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.… Read More
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… Read More
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… Read More
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… Read More
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… Read More