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Y
our client calls frantic one
morning just as you are sitting
down to your desk. "Joe,
what's up?" you ask genially
as you reach for your coffee.
"The IRS just cleaned out my bank
account!" yells Joe.
"What do you mean? We worked out
a payment plan a year ago at our
Collection Due Process hearing with
the settlement officer. I thought you
paid that off."
"I did," says Joe, "but we filed our
941 a few weeks ago and had another
balance I couldn't pay."
"A few weeks ago? Did they send you
the Notice of Intent to Levy yet?"
"No."
So you call the revenue officer. After
explaining that he just levied your client
and was supposed to give notice, the
revenue officer laughs. "Sorry, but I'm
afraid you're wrong. Your client had
a Collection Due Process a year ago.
He has now run up another debt within
two years. It's called a `Disqualified
Employment Tax Levy,' and we don't
have to give him notice beforehand."
The IRS Restructuring and
Reform Act
Prior to the Internal Revenue Service
Restructuring and Reform Act of 1998
(the Reform Act)
1
, taxpayers indebted
to the Internal Revenue Service (IRS)
were subject to intrusive, unfair, and
arbitrary acts committed in furtherance
of the IRS's efforts to administer the
tax code (IRC). Testimony produced
at hearings in front of members of the
Senate Finance Committee detailed
various abuses including deprivation of
due process, commission of perjury by
IRS agents, and an overarching policy
of intimidating financially distressed
taxpayers.
2
paid advertisement
By Lauren M. McNair, Esq. and Eric L. Green, Esq., Green & Sklarz LLC
The IRS Disqualified
Employment Tax Levy
Just When the Client Thought It Was
Safe to Owe Money Again...
1
See IRS Restructuring and Reform Act of
1998, Pub. L. No. 105-206, 1001-9016,
112 Stat. 685 (1998).
2
See IRS Restructuring: Hearings on Internal
Revenue Service Restructuring Before the
Senate Finance Comm., 105th Cong., (1998)
(statement of Robert S. Schriebman), available
in 1998 WL 47010.