Paul L. Caron

Wednesday, July 28, 2010

TIGTA: Tax Liens Up 200%, With 26% IRS Error Rate

TIGTA The Treasury Inspector General for Tax Administration today released Actions Are Needed to Protect Taxpayers’ Rights During the Lien Due Process (2010-30-072):

The IRS is not always following statutory requirements regarding the timely notification of taxpayers when liens are filed and does not always follow its own regulations for notifying taxpayers’ representatives of the filing of lien notices. ...

A Federal tax lien is created on balance-due cases in which the taxpayer has received a notice demanding payment and has neglected or refused to pay. The IRS files a Notice of Federal Tax Lien (lien notice) to protect its claims against taxpayers who owe delinquent taxes. These lien notices establish the IRS’s priority among secured creditors for the taxpayers’ property. The IRS must notify the affected taxpayers in writing, at their last known address, within five business days of the lien filings. However, as noted in previous TIGTA audits, the IRS has not always complied with this statutory requirement and it does not always follow its own internal guidelines for timely notifying taxpayer representatives of the filing of lien notices.

“This is a serious matter,” said J. Russell George, Treasury Inspector General for Tax Administration. “Because of this problem, some taxpayers’ rights to appeal the lien filings may have been jeopardized, and others may have had their rights violated when the IRS did not notify their representatives of the lien filings,” he added.

Tax Lien 1

Tax Lien 2

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As someone with a lein against "certain assets" I can relate to the confusion and frustration of those who have one. On the one side I went from healthy employed $60K/yr to chronic fatigue and severe TMJ that has ruined my life. Disability is a joke, disregards facts in evidence and purposely drags out cases so employment credits' expire. The IRS has sent me numerous threatening letters to which I have always responded. The lein threat letter was the last and as I have NO assets I wonder what they are after, my best guess would be SS since DHS has essentially said FOAD and I am now destitute, cannot afford prescriptions and expect to die within the next 3-6 months. The government is full of evil people with NO respect for citizens, ethics, morals or the spirit of the law.

Posted by: Ted | Jul 28, 2010 1:56:44 PM

I'm not surprised. My mother was victim of a lien due to having the same name of a woman that was a convicted felon in a Florida penitentiary. Took two years with a lawyer to have the lien removed so she could sell her house in Cuyahoga Falls, Ohio. According to the lawyer, it was common practice to place liens on all similarly named individuals that owned property. Some 10 others were affected by this same lien in this case alone. Something is very wrong with the law when this type of thing is a common occurrence.

Posted by: woody188 | Jul 28, 2010 8:42:40 PM

Ted, I have a client with all sorts of issues with the IRS who regularly reminds himself, "At least they can't kill me." Don't give them that last pleasure.

Posted by: Woody | Jul 29, 2010 8:19:21 AM