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

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?

IRS Refuses to Enforce Lien, Leaving Taxpayer Without Recourse

If the IRS has a superior lien on real estate, it should enforce its lien and apply the sales proceeds to reduce the taxpayer’s unpaid taxes. But what if there is a junior lien that acquires the real estate first? Can the IRS work out a deal with the junior lien holder and divert a…Continue readingIRS Refuses to Enforce Lien, Leaving Taxpayer Without Recourse

About the IRS Certificate of Discharge

The IRS’s lien for unpaid taxes attaches to all property owned by the individual. This can prevent the individual from selling or transferring their property or refinancing the property. There are several potential remedies that can help in this situation. One of these remedies is the IRS certificate of discharge. The IRS Certificate of Discharge…Continue readingAbout the IRS Certificate of Discharge

Can I Transfer Assets to Another Person If I Owe the IRS?

Taxpayers often ask us whether they can transfer property to another person if they have an unpaid tax debt or they expect to have a tax debt they cannot pay. There are a number of rules that have to be considered in answering this question. The answer varies based on whether the IRS has a…Continue readingCan I Transfer Assets to Another Person If I Owe the IRS?

Rules to Know When the IRS Seizes Your Property

The IRS has the authority to take your funds or property if you do not pay your taxes. This is commonly referred to as a “seizure.” Our Tax Code and the IRS’s Internal Revenue Manual provide specific rules and procedures the IRS has to follow to seize your property. Here are the four primary rules…Continue readingRules to Know When the IRS Seizes Your Property

When the IRS’s Collection Efforts Create an Economic Hardship

The IRS has broad collection powers that it can bring to bear to collect unpaid taxes. Even though it has these powers, it often chooses not to use them. This is especially true in cases where the collection actions would result in an economic hardship for the taxpayer. What is an Economic Hardship? The term…Continue readingWhen the IRS’s Collection Efforts Create an Economic Hardship

What You need to Know about the IRS Federal Tax Lien When Selling Property | Part 3

This is the third part of a three-part series of articles that explain what you need to know about the federal tax lien if you have unpaid tax debts. If you missed the prior two installments, you can find them here and here. As explained previously, the IRS’s federal tax lien can have a devastating…Continue readingWhat You need to Know about the IRS Federal Tax Lien When Selling Property | Part 3

What Property is Subject to the IRS’s Federal Tax Lien | Part Two

This is the second part of a three-part series of articles that explains what you need to know about the federal tax lien if you have unpaid tax debts. If you missed the first installment of this series, you can read it here. The IRS’s federal tax lien can have a devastating impact on your…Continue readingWhat Property is Subject to the IRS’s Federal Tax Lien | Part Two

What You Need to Know About IRS Federal Tax Lien | Part One

If you have unpaid taxes, you may be surprised to learn that the IRS has a lien against your property. The IRS federal tax lien is the tool that allows the IRS to collect unpaid taxes. The IRS’s federal tax lien can have a devastating impact on your personal finances. This is the first installment…Continue readingWhat You Need to Know About IRS Federal Tax Lien | Part One