[WSBAPT] Also Probate - IRS claim on annuity payments?

Fri May 27 10:02:21 PDT 2016

taxpayer him/herself can go online and register as directed and order transcripts.  Alternatively a person holding a 2848 can do so.  taxpayer can also go down to IRS, and order over the counter.  I have found ordering online ok and over the counter usually ends up with mailing anyway.  Be sure taxpayer does not confuse a transcript of account with w-2, 1099 information on file with IRS, or an abstract of tax returns filed.  Client should also know that even if the lien may have expired because it has not been refiled the IRS’s ability to collect the tax may not be dead if there have been tolling circumstances.  Unlike state judgments which are the power to collect itself, the filed federal lien is an encumbrance with its own expiration and priority rules, but the power to collect is tied to whether the 10 year collection statute has been subject to tolling events.  For your info, if the tax is still collectible but the lien has expired without having been refiled within the period stated on the original lien, IRS loses the lien priority it may have had if it had timely refiled, but it does not lose the power to collect.  

From: Paul Neumiller 
Sent: Friday, May 27, 2016 9:29 AM
To: 'WSBA Probate & Trust Listserv' 
Subject: Re: [WSBAPT] Also Probate - IRS claim on annuity payments?

John, I have this situation (Decedent’s IRS tax lien) so will you please explain your posting and how one pulls the “taxpayers account transcript.”  I also have a situation where a taxpayer had several tax liens against the taxpayer but some are now  just over 10 years old.  The taxpayer wants to know if it is “safe” to go on title for real property and be free of the tax liens.  Your post has direct impact because it indicates that the start of the 10 year period may not be obvious.  

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John J. Sullivan
Sent: Friday, May 27, 2016 8:05 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Also Probate - IRS claim on annuity payments?

Yes. You won't know precisely the beginning point or any tolling periods without pulling the taxpayers account transcript for the relevant years. 

John Sullivan

Sent from my iPad

On May 27, 2016, at 8:02 AM, Tom J. Westbrook <tjw at w3net.net> wrote:

  Also, bear in mind there is a 10 year collection limit on IRS liens, so if the lien is over 10 years since it was recorded and the taxpayer did not take any action that would toll the collection period, such as an offer in compromise, then the lien expires.

  https://www.irs.gov/irm/part5/irm_05-001-019.html 

  See 5.1.19.1.1  (05-19-2016)

  Collection Statutes

      Each tax assessment has a CSED. Internal Revenue Code section 6502 provides that the length of the period for collection after assessment of a tax liability is 10 years. The collection statute expiration ends the government's right to pursue collection of a liability.

  Sincerely,

  Tom

  Thomas J. Westbrook

  Attorney at Law

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  Rodgers, Kee & Card

  324 West Bay Drive NW, Suite 201

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  From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John J. Sullivan
  Sent: Thursday, May 26, 2016 10:48 PM
  To: WSBA Probate & Trust Listserv
  Subject: Re: [WSBAPT] Also Probate - IRS claim on annuity payments?

  Sharon:

  The IRS can reach IRA accounts while we are alive, so they can after death as well. As a matter of policy they only pursue collection when Alice in "flagrant" cases. I do not think that policy applies to decedents' accounts.

  The levy comes ahead of everything but admin expenses and expenses of last illness. 

  https://www.irs.gov/irm/part5/irm_05-005-001.html

  https://www.irs.gov/irm/part5/irm_05-011-006.html

  John Sullivan

  Sent from my iPhone

  On May 26, 2016, at 12:54 PM, Sharon Rutberg <email at sharonrutberglaw.com> wrote:

    Listmates –

    Decedent owed the IRS for unpaid taxes. Left few assets. Ex-wife was the beneficiary of his employee pension/annuity and is now receiving the monthly payments. Title 11 RCW appears to exclude annuity payments from the definition of nonprobate assets subject to creditor claims. Wondering, however, if under federal law the IRS is likely to make a claim against the payments going to the ex-wife. 

    Thanks for any help.

    Sharon

    Law Office of Sharon C. Rutberg, PS

    1734 NW Market St.

    Seattle, WA 98107

    Website: www.sharonrutberglaw.com 

    206-409-2604

    email at sharonrutberglaw.com

    Washington State Bar #47055
    D.C. Bar #420576

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