Tax Liens On WHole Life

[djs]

You can get stuck in IRS semantics all day. The fast solution is to bond the lien / levy, and get the death benefit.
You'll probably have to bond for twice the amount, but it will get you your death benefit.

Check with the insurance company, make sure they will accept a bond.

I've done this when house titles (or car titles) had a lien on them that couldn't be proven one way or another. I'm assuming it will work for the IRS lien as well.

Not cheap, depends a lot on the amount needed.

Dan

 

[theinuranceguy]

I understand what you guys are saying, the problem is that the IRS has no info on this? They have gone back for the past ten years and the man owes nothing in taxes and there is no record of a levy. The insurance company says they were served with a levy over 10 years ago and they need official documentation saying this was satisfied.

So the family is stuck between a rock and a hard place. The insurance company is asking for something from the IRS that is not possible to produce...

I cant wait until this is all resolved and they send out an agent to deliver the check, lol! I told them I want to be there!

(Because I know he/she is going to try to sell them something else, which is ok, but the agent should of been proactive to help them through this problem)

 

[SportsNut]

I understand what you guys are saying, the problem is that the IRS has no info on this? They have gone back for the past ten years and the man owes nothing in taxes and there is no record of a levy. The insurance company says they were served with a levy over 10 years ago and they need official documentation saying this was satisfied.

So the family is stuck between a rock and a hard place. The insurance company is asking for something from the IRS that is not possible to produce...

I cant wait until this is all resolved and they send out an agent to deliver the check, lol! I told them I want to be there!

(Because I know he/she is going to try to sell them something else, which is ok, but the agent should of been proactive to help them through this problem)

IRS Form 668D Release from Levy / Release of Property from Levy http://www.irstaxattorney.com/lpage/images/taxlevyrelease.gif

You / they should obtain a copy of what the Ins Co was served years ago. This notice should have a Doc # on it, which might be relevant... however, you really don't want to point the IRS in the direction of where or how to find the info unneccesarily. This could be as simple as transposed SSN or other admin error.

Anyway, obtain the notice from the ins co (which they may not want to release), and then obtain help with prep of release by a Tax Atty.

The odd thing is, if the Ins Co received Notice of intent to Levy, they shoud have sent the IRS the funds within 21 days... Wonder why that didn't happen...? Maybe the Ins Co is screwed up internally...? Who knows, but you need more facts, still.

 

[somarco]

Statute of Limitations. How Long Can the IRS Collect Back Taxes or Audit My Tax Return?

The statute of limitations limits the time during which an action can be brought by the IRS for a tax audit and the time for IRS tax collection activities. Generally, there is a 3-year statute of limitations for the IRS auditing a tax return and a 10-year statute of limitations for the IRS collecting tax.

and

The statute of limitations does not apply in the case of a false tax return or fraudulent tax return filed with the IRS with intent to evade any tax. See section 6501(c)(1) of the Tax Code and section 301.6501(c)-1 of the Tax Regulations.

 

[URDRWHO]

Hey we agree on that one.

Even in states where cash values are protected from creditors, the IRS can basically do anything they want.

Their claim is always senior to any other.

 

[SportsNut]

Even in states where cash values are protected from creditors, the IRS can basically do anything they want.

Their claim is always senior to any other.

Basically bad info about the IRS's claim being Sr to the claim of others... Just isn't so...

The IRS is a creditor like many others... sure, they can attempt to throw their substantial weight around and will surely claim a pile of cash or asset if other creditors allow them to... But, if a knowledgable creditor and having a properly marshalled Sr claim to the "service", as they like to be called, goes toe to toe with the IRS, that knowledgable creditor will win 10 times out of 9...

Oh sure, there are the stories... but who really knows...? I have been in the trenches many times with the "service", and remain largely unscathed through these battles. In fact, you might be surprised at just how easily you can influence them to drop their claim, and file a release, or partial release... if the subject case is presented properly.

 

[URDRWHO]

I have a friend that went toe to toe with the IRS. The IRS took his house and sold it at auction. It was an illegal action but hey.....they do have the powers-to-be working with them. Anyhow, my friend worked through the courts and did get his house back. Knowledge and perseverance is key when dealing with the IRS.

They need a good tax attorney.

I would say that I am NOT an Insurance expert, still lots to learn, or re-learn, as the case may be... but I am pretty much of an expert in Tax Liens... I have successfully negotiated the "pants off the IRS many times". Oh, knowledge of collections with the IRS isn't complete without having working knowledge of the BK laws...

Your notion of this 10 yr maximum for a tax lien being collected is poppycock. The lien is renewable and can be renewed infinitum...
Bk has no bearing on this matter, other than it would "stay" the collection efforts while the Bk was active. Once the Bk is discharged, the collection process begins again, as it relates to the IRS. The debt or obligation simply isn't discharged, as with most other debts.

You might want to read the link that is posted above, regarding tax liens... it may clear up some misconceptions for you.

 

[SportsNut]

I have a friend that went toe to toe with the IRS. The IRS took his house and sold it at auction. It was an illegal action but hey.....they do have the powers-to-be working with them. Anyhow, my friend worked through the courts and did get his house back. Knowledge and perseverance is key when dealing with the IRS.

They need a good tax attorney.

They have been known to be wrong more times than right...
And for Gawd sake, whose rules are they, anyway...?

I do believe that if I were making the rules, I would know them, and play within them.... not something that the service tends to practice.

 

[Mark]

I would find me a tax lawyer.

 

[SportsNut]

I would find me a tax lawyer.

One would think that finding a tax lawyer is good advice... I wouldn't dissuade anyone from doing so...

With that said, the last two cases that I was involved in, were both cases where a tax lawyer had been retained, paid a huge retainer and essentially didn't accomplish squat... other than basically stating: "yea, you got a tax problem". NO **** SHERLOCK.

Then I resolved the problems for a hell-of-a-lot less than those knuckelheads were paid, to do nothing... but I an NOT an Atty, (nor an enrolled agent), and representing someone in these type of cases can be mistaken for practicing law w/o a license... So great caution is used.