Law Offices of Robert T. Leonard, APC
Free Consultations Available
Toll Free 888-408-9486
818-224-7935

IRS may have misrouted tax lien notices, report says

As we have noted in our prior posts, no one actually wants to receive a tax lien. Most would agree that IRS liens are the bane of one’s existence. However, if a tax lien is initiated against a taxpayer, the federal government has a legal obligation to send notice of the lien to the taxpayer’s last known address. The government is also charged to use care in ensuring that a taxpayer’s address information properly updated.

According to a recent accountingtoday.com report, the IRS reportedly failed to send tax lien notices to the right address, even though it had updated information. The Treasury Inspector General for Tax Administration (TIGTA) reportedly found several instances where Section 6320(a) was not followed. Essentially, lien notices were not sent to a taxpayer’s secondary address even though it was on file and the primary address was deemed undeliverable.

Further, the TIGTA report noted that tax lien notices were not properly sent to other tax representatives, including lawyers and certified pubic accountants. In all, more than 22,000 taxpayers could have been adversely affected and even denied the chance to formally challenge the liens.

TIGTA made several recommendations to improve the reliability of the notification process, including programming changes to taxpayer accounts to include several addresses that may available in the event the primary address is deemed undeliverable. Also courtesy copies of lien notifications should be made available to automated collection employees, and that the mailing status of lien notices should be appropriately updated.

Indeed, the IRS thought it appropriate to adopt these recommendations, but it remains to be seen whether they will be fully implemented in time for the next filing year. 

No Comments

Leave a comment
Comment Information

Send Us A Quick Message

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Law Offices of Robert T. Leonard, APC

Woodland Hills Office
21700 Oxnard Street
Suite 2060
Woodland Hills, CA 91367

Toll Free: 888-408-9486
Phone: 818-224-7935
Fax: 818-587-3833
Woodland Hills Tax Law Office

Los Angeles Office
10100 Santa Monica Blvd.
Suite 300
Los Angeles, CA 90067

Toll Free: 888-408-9486
Phone: 818-224-7935
Fax: 818-587-3833
Map & Directions

Call Today