Attorney-at-Law

LIEN OR LEVY

In Uncategorized on 04/19/2019 at 16:18

Again this is one of those stories where those who read it don’t need it, and those who need it won’t read it. But having a few minutes on a busy day, here’s the story of Esteban Baeza, Docket No. 3402-18L, filed 4/19/19.

Estaban had three (count ’em, three) years at issue after IRS dropped one year because Estaban proved he was entitled to a refund. He entered into an IA for the remainder, and IRS dropped the levy with which they were trying to collect.

But the lien remained, and Estaban wanted to fight that.

That Obliging Jurist, Judge David Gustafson, gives us a designated hitter to explain to Estaban and others similarly situated.

“Mr. Baeza’s only contention in this case is that Appeals should not have sustained the lien notice since he had entered into an installment agreement with the IRS pursuant to which he had agreed to pay over time the liabilities that were the subject of the lien notice. He has not alleged any other defect in Appeals handling of his CDP hearing. He has not challenged his liability for the taxes whose collection is at issue. He has not contended that Appeals erred by denying him any collection alternative (nor that he proposed any).” Order, at pp. 3-4.

Ordinarily, this would be “game over,” but Judge Gustafson obligingly explains.

“If a delinquent taxpayer enters into an installment agreement with the IRS, then it would stand to reason that the IRS might forebear active collection of the unpaid liabilities–and that is what the IRS did in Mr. Baeza’s case by determining that ‘levy action is no longer warranted’. However, since the IRS has thus agreed to wait for the taxpayer to pay those liabilities over time, it seems reasonable that the IRS might file a notice of lien in order to protect its ability to collect in the event that the taxpayer fails to fulfill the terms of the installment agreement. Mr. Baeza has explained no reason why this is not so in his case.” Order, at p. 4. (Emphasis by the Court.)

“Trust me, trust me” is no answer.

 

 

 

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