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Taxpayer Bill of Rights (Part XI)

Taxpayer Bill of Rights (Part XI): The IRS has adopted a Taxpayer Bill of Rights as proposed by National Taxpayer Advocate Nina Olson

Bill of Right #7: The Right to Privacy (cont.)

What This Means for You

* There are limits on the amount of wages that the IRS can levy (seize) in order to collect tax that you owe. A portion of wages equivalent to the standard deduction combined with any deductions for personal exemptions is protected from levy. IRC § 6334(d)

* The IRS cannot seize your personal residence, including a residence used as a principal residence by your spouse, former spouse, or minor child, without first getting court approval, and it must show there is no reasonable alternative for collecting the tax debt from you. IRC § 6334(e) Treas. Reg. § 301.6334-1(d)(1)

The revenue officer must attempt to personally contact you and if you indicate the seizure would cause a hardship, he or she must assist you in contacting the Taxpayer Advocate Service if not providing the requested relief. IRM

The IRS issued interim guidance that extends these protections to suits to foreclose a lien on a principal residence. According to this guidance, the IRS should not pursue a suit to foreclose a lien on your principal residence unless it has considered hardship issues and there are no reasonable administrative remedies. See IRS Interim Guidance Memo SBSE-05-0414-0032.

* As soon as practicable after seizure, the IRS must provide written notice to the owner of the property that the property will be put up for sale. Before the sale of the property, the IRS shall determine a minimum bid price. Before the property is sold, if the owner of the property pays the amount of the tax liability plus the expenses associated with the seizure, the IRS will return the property to the owner. Within 180 days after the sale, any person having an interest in the property may redeem the property sold by paying the amount the purchaser paid plus interest. IRC §§ 6335, 6337

More information next week on Right 7 (IRS NTA web site) (TTT 7/10/18)