Year: 2024

The Internal Revenue Code requires that the Internal Revenue Service (“IRS”) comply with fair tax collection practices, similar to the protections provided by the Fair Debt Collection Practices Act, which governs private creditors and their customers. The IRS is subject to restrictions governing communications with taxpayers and prohibitions on a variety of abusive collection processes and harassment techniques.  For example, the IRS cannot communicate with the taxpayer at…

The Federal Tax Lien (“FTL”) facilitates the collection of delinquent taxes.  The FTL is an encumbrance, on the property, of the delinquent taxpayer, providing security for payment of the tax delinquency. After Notice and Demand for Payment, if the taxpayer fails to pay the tax assessment, then the amount of the tax assessment, including any interest and penalties, becomes a FTL and automatically attaches…

If the taxpayer:  (i) files an Indiana tax return with a balance due and without payment; or (ii) does not resolve the delinquent Indiana taxes at the proposed assessment stage (payment or protest), then the Indiana Department of Revenue (“IN-DOR”) will issue a Demand for Payment (“AR-40”). Within twenty (20) days of the date of the AR-40:  (i) full payment must be made to the IN-DOR; or (ii) payment arrangements must…

The Federal Tax Lien (“FTL”) is not self-executing — meaning that the FTL encumbers the taxpayer’s property but it does not collect the delinquent taxes.  To enforce the collection of delinquent taxes, the Internal Revenue Service (“IRS”) utilizes the Federal Tax Levy (“Levy”), as an administrative collection tool, by which to take custody of the taxpayer’s property, in order to satisfy any…

Whether it be the Indiana Department of Revenue, the County Sheriff, or a privately contracted collection agency that is attempting to collect delinquent Indiana taxes, the power to Levy on the taxpayer’s bank accounts, salary, wages, or other property is available. In general, the County Sheriff shall only have one hundred twenty (120) days, from the date that the Judgment…

The Internal Revenue Service (“IRS”) can seek to collect on the taxpayer’s liability, from the property, of a third (3rd) party, when the third (3rd) party is holding the taxpayer’s property as a nominee. The nominee theory is based on the premise that the taxpayer ultimately retains the benefit, use, or control over property that was allegedly transferred to the…

If a Notice of Deficiency (“NOD”) has been issued and a Protest has been filed by the taxpayer, then the amount, of the tax deficiency, shall be deemed assessed, upon the date, when the decision, of the Illinois Department of Revenue, becomes final. Sixty (60) days after the date of the NOD, if the taxpayer has not filed a Protest,…

As soon as practicable after a lawful assessment, the Illinois Department of Revenue (“IL-DOR”) shall issue a Notice and Demand for Payment (“N&DFP”), to the taxpayer, for any unpaid portion, of the assessment.  The N&DFP shall be left at the dwelling or usual place of business, of the taxpayer, or shall be sent by mail, to the taxpayer’s, last known…