|
Posted by ob_original on October 27, 2006, 10:55 pm
Please log in for more thread options
My brother & I own property in MS that we want to develop.
It used to also be 1/3 owned by my parents. We quit-deeded
the property in mine & my brothers name about a year ago.
They received a notice recently about a 1040 lien on any/all
property they own. Can the IRS go back and put a lien on
the property that is in my brother & my name ?
My brother and I are developing the property to pay off the
IRS debt they owe, but we are afraid of developing the land
if the IRS can put a lien on it & interfere with the
development process.
Thx
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
|
|
Posted by Paul Thomas on October 28, 2006, 6:40 pm
Please log in for more thread options
> My brother & I own property in MS that we want to develop.
> It used to also be 1/3 owned by my parents. We quit-deeded
> the property in mine & my brothers name about a year ago.
>
> They received a notice recently about a 1040 lien on any/all
> property they own. Can the IRS go back and put a lien on
> the property that is in my brother & my name ?
>
> My brother and I are developing the property to pay off the
> IRS debt they owe, but we are afraid of developing the land
> if the IRS can put a lien on it & interfere with the
> development process.
It's going to depend on the facts and circumstances that you
don't go into, and you may not want to in such a public
forum. But if you transferred the property ~~~knowing~~~
about the IRS problems, then they may claim that it wasn't a
transfer in good faith. That meaning, the transfer was done
to protect the property from seizure by the IRS (and/or
state), that it was for less than fair value (you didn't
buy-out your parents it seems).
Even if the IRS were to put a lien on the property, it
shouldn't slow development because as the property gets sold
off, the proceeds will go to pay the back taxes.
Any lien would assure that some or all of the proceeds went
to the taxes.
To be sure of your position in all this, consult a tax
attorney or real estate attorney (which you should have done
in the beginning).
--
Paul A. Thomas, CPA
Athens, Georgia
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
|
|
Posted by PaulTry on October 28, 2006, 6:40 pm
Please log in for more thread options ob_original@yahoo.com wrote:
> My brother & I own property in MS that we want to develop.
> It used to also be 1/3 owned by my parents. We quit-deeded
> the property in mine & my brothers name about a year ago.
>
> They received a notice recently about a 1040 lien on any/all
> property they own. Can the IRS go back and put a lien on
> the property that is in my brother & my name ?
>
> My brother and I are developing the property to pay off the
> IRS debt they owe, but we are afraid of developing the land
> if the IRS can put a lien on it & interfere with the
> development process.
If the tax liability was incurred before the property was
transferred, then yes, the IRS can lien the property as it
is now titled.
The tax liability was incurred as of the end of the year in
which it accrued. The Federal Tax Lien (FTL) came into
existence when the tax liability was assessed, demand was
made for payment, and your parents neglected or refused to
pay. A Notice of Federal Tax Lien (NFTL) filed in the
jurisdiction (generally the county) where the property is
located will cause the FTL to directly attach real property
owned by your parents. If the property was quit-claimed
before the NFTL was filed, the FTL won't immediately cloud
the property title. However, the IRS (and other affected
creditors, for that matter) can take administrative and/or
judicial nominee/transferee actions to extend their lien to
the transferred property. Some of the nominee/transferee
indicators the IRS will look at in your case are a transfer
to related parties, for less than adequate consideration,
with taxpayers retaining a beneficial interest in the
property. Whether the IRS will pursue the property depends
on, among other things, the amount of the tax liability, the
value of the transferred property, the ability to collect
from other sources, and the experience and degree of effort
exerted by the collection personnel working your parents'
case.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
|
| Similar Threads | Posted | | Redacted SSN's on Notices of Lien | December 18, 2007, 12:13 pm |
| tax lien fell off credit reports-will the irs continue to attach my fed/state refunds? | December 20, 2007, 1:01 am |
| IRA question | November 2, 2006, 11:56 pm |
| Question | January 18, 2007, 4:01 am |
| W-2 Box 12 question | April 13, 2007, 3:31 am |
| K-1 question | June 24, 2007, 10:41 pm |
| HSA Question | September 12, 2007, 10:05 pm |
| MLP Tax Question | September 20, 2007, 1:00 am |
| HoH question | October 13, 2007, 11:06 pm |
| Re: HoH question | October 17, 2007, 2:09 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap