Today’s accounting moment: Practical Application of Income Tax Liens

Danny Abel tax lien

Lien on Me: Virtual Debtors Prisons, The Practical Effects of Tax Liens
and Proposals for Reform
Volume 49 of University of Louisville Law Review
Danshera Cords

Introduction

Imagine having an unenforceable debt that shows up on your credit report forever, for example a tax lien that was filed with respect to a tax liability on a tax year for which the statute of limitations for collecting the tax liability has now expired. Imagine next that a professional licensing organization (such as the state bar for a lawyer or a self-regulating organization (SRO) for a security broker/dealer) requires about you demonstrate “financial responsibility” or that a prospective employer looks at your credit report and that negative items, including tax liens, could prevent you from obtaining the license or employment.

Hat Tip: Paul Caron and the gang at the Tax Professor Blog

11 thoughts on “Today’s accounting moment: Practical Application of Income Tax Liens”

  1. That tax lien has not prescribed. I have always wondered why the IRS does not seize property to satisfy the liens? I knew a guy who had one his property forever and the property was owned free and clear. Once the underlying debt, i.e. the taxes prescribed, I believe the person was able to have the lien cancelled. Why does the article imply that the judicial mortgage created by the lien cannot be cancelled because of prescription?

  2. I realize assessments are padded by the extortionists, but even so, Doug, thinking about tax rates and such, either Danny boy was one great money making machine or too f**ing stupid to take all the offsets entitled to as an attorney.

  3. Tax liens are time limited, unpaid assessments last a lifetime. It would make no sense to file and simultaneously cancel a tax lien. Empire depending on the circumstances half or more of that total could be penalties and interest.

  4. I really think it’s sweet that you are offering tax advise to an individual who you are currently involved in litigation with. Very big of you 😉
    IJR

  5. Who cares? The IRS makes it up as it goes along and files liens often for inflated amounts. The IRS has got to be one of the most corrupt and inept government entities. The only paperwork they fail to “lose” is everyone’s money.

  6. I’d say the IRS is right there with the FBI, CIA, MBI, and every other sorry ass it takes to extort billions. some Attorneys and corrupted judges ie., Court thieves need the back up. Just ask that bunch of crooks in Hinds County or that brown nose bunch from the New Orleans Court of appeals. If they can’t steal it they don’t want it. How do you steal 2 billion 330 million belonging to three people and factually hide it. How many fake documents must the court agree to allowing for to steal? Lead plaintiffs secure first monetary action. The trial of said cause proves by jury trial no other persons were injured enough to get shit. Is this when the printing press of fraudulent fake court actions begin? The thought of the number of people it takes to steal this amount of money is amazing. And oh yeah, Fuck the justice department for refusal to act or even respond. Like a lot of useless money being spent paying for political mob protection from the law is the shits.

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