A Little Bit of Tax Reform: A Look at Wrongful Levies

Tax Cuts and Jobs ActCongress got something right.

In the course of enacting the Tax Cuts and Jobs Act, Pub. L. 115-97, the Senate added a provision addressing a recurring problem by extending the time to file a wrongful levy action from nine months to two years. It also gave the IRS authority to return money seized or monetary proceeds of property sold following a levy within two years of the date of levy. To put the changes in context, a bit of background is in order.

Congress has given the IRS very potent collection tools; it can impose a lien on a taxpayer’s property, and it can seize property from a taxpayer, all without a court order.… Read More

A Family Affair: Transferees, Tax Liens, and Other People’s Problems

tax lienIf paying taxes is painful, paying someone else’s taxes hurts even more.

A recent district court case offers a cogent example: A scrap metals business in Alabama lost a battle with the IRS, which sought to enforce a federal tax lien against property acquired from a delinquent taxpayer; as in many of these cases, greater care on the part of the purchaser would have avoided the problem. United States v. Urioste, No. 4:15-CV-1787-VEH, 2017 U.S. Dist. LEXIS 4442 (N.D. Ala. Jan. 12, 2017).

Michael Urioste, the taxpayer, died leaving over $576,000 in delinquent income taxes and approximately $535,000 in delinquent employment taxes outstanding.… Read More