IRS About To Seize Residence--Please Verify All Steps

If the case has reached this point, it has been grossly mishandled thus far. A professional, or another professional, needs to be retained immediately.

See

Even better would be to hire yourself a competent representative, as has already been mentioned.

Before the IRS gets around to seizing a personal residence, there are many steps & procedures they must follow. Did you, the taxpayer respond to & cooperate with the IRS? Seizing a personal residence is not the first step in the IRS' collection process, Or did you avoid, not respond to previous IRS attempts to collect?

If you have had offers in compromise rejected, chances are your only option at this time is the taxpayer advocate's office

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-----> real address on hobokeni or hobokenx

It is not IRS policy to seize personal residences, except as a last resort where cooperation has been almost non existant. Are you sure it is IRS who is taking action and not the state? Some states are TOUGHT!

I would dare say that the man has not had qualified counsel in this matter, not even in the OIC process.

Since there is two weeks at hand, by all means suggest to him (is he your client perchance?) that he hire an attorney immediately. Then the attorney can work hand in hand with a qualified local tax pro to help resolve the issue. Contact either an Enrolled Agent (EA) or Certified Public Accountant (CPA).

The case sounds tough, but there must be more to it than meets the eye.

ChEAr$, Harlan Lunsford, EA n LA

I am the Court appointed attorney. Have been in Federal Court often on Criminal Tax cases and in US Tax Court often on civil tax cases (plus have years of Administrative experience). Never on Order to Show Cause right before a seizure of personal residence.

My client just disclosed to me today he had used JK Harris until he became very unhappy. I'm still trying to get something resembling a file and reached out to you folks in the hopes that one of you, unlike me, had actually defended one of these cases and could give me some tips.

My Plan A is to contact Department of Justice Attorney (trial counsel) and try to belatedly get this back in negotiation mode (instead of in enforcement mode). Client insists that he relied on JK harris they dropped the ball (I take no position yet on this, just relating what client said).

Again any tips appreciated. I took this case pro bono. Nice--Harris got paid I do it for free!!!

I'll offer the following for your "for what it's worth" file. Perspective: I retired from IRS Collection 11 years ago. When I left, the highest level of review mandated before seizure of a residence was the District Director. (Taxpayer Bill of Rights 2 was the last version before I retired.)

Some things haven't changed since 1971, when I started as a baby knuckledragging thug. Seizure of a primary residence was always a last resort. It's always been a public relations nightmare. It's pursued only when there's absolutely no other way. More than once I said, "He can stay in that house until he dies as long as he gives us an extension of the statute."

Also unchanged is the fact that it's difficult, but not impossible, for the IRS to warn the taxpayer that he's getting hosed by his rep, which is what I suspect happened here. IIRC, there were three offers in compromise? At a certain point even the kinder, gentler IRS is going to say "enough."

Ability to pay should be pretty apparent to you from the paperwork required for offers. Be sure to vet the financial statements to make sure they weren't fudged.

It seems to me the most potential for you is the representation issue, with an intense focus on what the taxpayer knew and didn't know.

While IRS is required to deal with the taxpayer's authorized rep, there are also prescribed bypass procedures when the rep isn't cooperating. They're in the Internal Revenue Manual and referenced in the pre-seizure considerations I posted a link for previously.

If the rep wasn't cooperating and nobody ever told the taxpayer, you may be able to make a case for delay.

Yep, that's exactly the scenario I had in mind as to what went on before.

You're certainly on the right track in trying to handle this at that level. Please let us know how your fair. IMWTK!

ChEAr$, Harlan Lunsford, EA n LA

You should request a copy of the entire collection file including the Revenue Officer's Case History log. That will tell you if all the checklists were followed. JKH is reason enough for a delay. At some point, the Director of practice or Justice Department needs to shut them down.

Mike, Harlan, Phil:

Thanks for a boatload of invaluable tips. I am pushing the Judge hard for a full discovery order and I want the RO's personnel file too. I've dealt with him (RO) before he is, as Phil says he was when he first started, a knuckle dragging thug. He is ruthless, heartless and usually lawless.

I was most heartened to read Mike's opinion about JK Harris and agree completely with his experiences with them. I've gotten many clients over the years who they completely dropped the ball on. From the many clients I've gotten on the rebound, JKH's style is speak to a saleman, large retainer (2,000-8,000) file lowball Offer in Compromise to buy months of time and then duck and run.

Because of my largely Criminal Tax practice I speak often and amicably with many Special Agents. On several occasions I have meant to ask them why they let this massively improper behavior and abuse of procedures that JKH often perpetrates continue. In the Mays Landing NJ office IRS is on the first floor of the building JK Harris is on the

4th Floor!!!

Again thanks for your help. I'll keep you posted.

PS--The Judge had better not sign a complete pro bono order because the client did pay JK Harris and has a paid family attorney too.

Phil, Harlan, Mike, Others:

Bearing in mind my experience has been mostly with IRS Criminal Cases and in US Tax Court matters--and that I was definitely "sucked into" accepting this case as a "favor" to the Court--I have a request that may sound simple but I have not yet been able to get what I need (time pressures too).

The Judge has asked me to file a Formal Responsive Pleading to the Government's Complaint/Order to Show Cause regarding the sale of this guy's home. I have verbally asked for complete Discovery of the Government's File which the Judge also wants in writing.

Does anyone have a Link to the Proper Form of Response for US District Court ("admits" "denies" "alleges" "moves", etc.) based (I assume) on the Federal Rules of Civil Procedure? I know the rules of evidence and the Fed. Rules of Criminal Procedure quite well but am clueless on properly filing a responsive Pleading or a proper request for documents.

A link would be great; a blank Form for Response and/or Discovery would be great. A link to Pleadings actually filed in such a case (or any Order to Show Cause case in Fed. Court) would be a home run for me. Yes of course I have a PACER account but have never had to use it before. Usually know what the heck I'm doing!!!

Thanks for any help or guidance.

And remember: no good deed goes unpunished!!! [When the Judge's Deputy originally asked me to help, saying I could decline, I said "of course I'll help but the Judge must treat me kind of like either a Pro Se party or fresh out of law school attorney" --guess how that has turned out??]