webneb[at]hotmail.com posted:

- quote -

Sorry, just can't resist ROTFL at this comment. Best
chuckle I've had in days.

Your situation is otherwise worthy of sympathy, and I hope
someone qualified gives you good advice.

Bill

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"Hawaii_Randy" <webneb[at]hotmail.com> wrote:

- quote -

You might be able to successfully pursue a wrongful levy
claim. I wouldn't hire the lawyer who failed to give you
good advice when you set this thing up.

<snip
- quote -

Yes to both. The Government could sue to foreclose its
lien, but I doubt it would. The lien will just sit there
pending transfer of the property. The form of ownership
isn't clear to me, but I'm assuming tenancy in common. If
the property is held as joint tenancy with right of
suvivorship, there is no lien on it.

- quote -

It strikes me that the best thing to do would be what should
have been done in the first place. Set up a legal entity
and hold all assets in its name.

- quote -

The IRS will issue a Certificate of Discharge in exchange
for the government's interest in the property. Without it,
the lien stays with the property through any transfer.

- quote -

Yes, but again, highly unlikely. That would require a
seizure and sale along with a government purchase. I
wouldn't fret about it.

- quote -

The spouse and what she wants to do with her share of the
property is a totally separate issue from the tax lien.

- quote -

All questions for the lawyer you need to hire.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I am a 1/5 owner of a vacation property, with 4 other
individuals. Upon purchase of the property, all 5 owners
created a partnership agreement. We never registered any
type of legal entity for this, only the agreement was
created for a formal declaration of how to conduct busness
with the property. One individual passed away one year ago.
That individual was acting as the partnership manager.

It turns out that that individual owes the IRS a large tax
liability. The IRS had recently confiscated an operating
bank account which we set up so that all financial operating
activity of the property passed through that account. I.e.,
any rental dollars received were put into the account,
operational funding was put into the account from the
partners, and expenses such as cleaning, utilities, etc.
were paid out of the account. The account was in the name of
the partner whom passed away and who was also the acting
partnership manager. The account was also in the name of one
of the partners whom was acting as the treasurer. As well, a
our rental property manager has signing rights to the
account so she could pay bills from it. Since the
partnerhsip never had a formal legal business entity created
for it, the account was put into the names of the managing
partner and the treasurer.

What legal recourse, if any, do I have to get back at least
the 80% of the bank account dollars (~9K) that are not
attributed to the deceased partner whom owes the taxes ?
BTW, the deceased partner is survived by a spouse, and whos
name it on the vacation property titles associated witht he
1/5 share of the deceased partner. Would it be that since
the operating account was not in the name of a company, but
rather in the name of the managing partner, we have no
recourse ?

Also, we are expecting soo that the IRS will put a lien on
the vacation property, since 1.5 interest can be attributed
to the deceased partner. Can the IRS force a sale of the
property, even though only 1/5 can be attributed to the
deceased partner ? Or, will the lien just sit there until we
decide to eventually sell, if ever, and that we cannot sell
until we settle 1/5 of the proceeds with the IRS ?

Would it be better to try and buy out the 1/5 interest from
the surviving spouse ? Would this transaction be scrutinized
ny the IRS and could be invalidated ? Could the IRS ever
become the 1/5 owner of the property ? What guidelines
should we sue in dealing with the spouse and/or the IRS in
this situation ? I.e., never pay anything direclty to the
IRS. Settle only with the surviving spouse. Talk to both in
the same room (the surviving spouse does not answer our
calls). What recourse do we have with the surviving spouse
over the confiscated account founds ? I.e., we can take it
out of her value of the 1/5 value of the property if sold ?
What it the spouse decides to stop paying 1/5 share of the
vacation property mortgage ? If the IRS ever claims
ownership of the 1/5 interest in the property, can they be
forced to pay their share of the mortgage ?

Thanks.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >