On Nov 22, 12:12*am, paultry <afn02...[at]afn.org> wrote:
- quote -

Paultry:

Again thanks for some highly focused ideas. I referred the client to a
Bankruptcy attorney for a bankruptcy consult and the attorney (very
experienced especially in whether bankruptcy will or will not help a
client with concomitant tax debt) concluded bankruptcy would not be
suitable for these facts.

Client's inability to borrow seems to be a combination of lack of
equity and horrendous credit. The guy is a hard working guy was
devastated emotionally and financially when his wife died after a long
illness. He just couldn't get it together taxwise and then fell way
behind.

Into his life (before I was retained) walked one of the most vicious--
i.e., borderline illegal--revenue officers in the area. A total take
no prisoners guy and not in a good way.

As part of my Discovery I want this jerk's personnel file because I am
certain (first hand knowledge and his less than sterling reputation in
the tax defense bar locally) that the File will show him to be a very
impeachable government witness (it was he who proposed the sale of the
home and affirmed that he had followed the law and taken all other
required steps). Highly doubtful.

Thanks again I'll look closely for the analysis of equity pages in the
File (if I get it--Government was to give me NOTHING arguing "this is
not a regular civil case--Order to Show Cause--therefore Discovery
does not apply AT ALL!!).

Thanks again.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

The personal residence seizure process is much like a
freight train - slow to get up to speed, but hard to stop
when it is moving. Now that it has progressed to Court, the
Service and Justice are not likely to back down.

Is the taxpayer's inability to borrow due to lack of equity,
or poor credit and inability to pay? I'd want to see the
Revenue Officer's case history, specifically the property's
equity determination. Given the current real estate market,
it may be worthwhile to secure a current, professional
appraisal to establish fair market value (something the
Service probably has not done.) Forced sale value will
usually be set at 75% of FMV. If encumbrances senior to the
tax lien equal or exceed that, they'll be hard pressed to
justify seizure. If sufficient equity exists, and you can't
find any procedural errors, it may be too late to help the
taxpayer.

As always, the taxpayer must be in full compliance with all
business and personal tax filing, depositing, and estimated
payment requirements to have any negotiating ability.

Chapter 13 would stop the seizure, but it sounds as though
you've already ruled out the ability to fund a repayment
plan.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Nov 20, 3:56*pm, paultry <afn02...[at]afn.org> wrote:
- quote -

Paultry:

Thanks for the info.He was an uncooperative taxpayer who for years had
a large tax debt AND an even larger debt to medical providers because
of his (now) late wife's long illness and death.

The case was already in Federal Court on an Order to Show Cause Why
The Court should not order the sale of his home when I was retained 11
months ago.Since then my client has cooperated 100% (supplied
financials, applied and was rejected for a Home Equity loan, applied
and is about to be rejected for a Reverse Mortgage, etc.).

The Government (Department of Justice probably taking its cues from
the IRS) refuses to settle the litigation in any way despite the fact
that he has fully cooperated and has nothing (and can get nothing). I
am mystified because if I had been his rep. before the case was
forwarded to Court--i.e., when it was still in the administrative
collection mode--it would have almost certainly been CNC'd by now.

I just served massive Discovery on the Government to get their Files
to try to find out why they want this guy out on the street. The Judge
appears (informally) sympathetic but DJ will not back off at all. It's
why I reached out to you learned folks!!!

Again thanks for any help or experiences.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Michael wrote:
- quote -

Is this an administrative seizure of personal residence
(which requires court approval) or a judicial foreclosure of
the tax lien? Either way, there must be equity for the
Service to proceed, else there is no collection potential.
Lots of good seizure info here:
http://www.irs.gov/irm/part5/ch10s01.html
Look closely at the Will Pay, Can't Pay, Won't Pay factors.
I'd guess this is an uncooperative taxpayer with a
history of non-compliance, or a last chance effort to
protect the collection statute.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Have any of you (or your clients) had any personal involvement with
the IRS actually bringing a client to Federal Court in an effort to
force the sale of the client's home?

At what point if any does this become abuse of discretion on the IRS's
part when there were other resolutions available and/or the client has
absolutely no assets or accessible equity in the home?

I've been doing this 38+ years and this is the first time they have
tried this as a "collection tool" (though there is NOTHING to collect
from this 68 year old self-employed, ill, small scale drywall
contractor).

It strikes me as absurd but any tips, anecdotes appreciated.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >