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