If a taxpayer fails to pay the IRS following a tax assessment, the agency can take legal action to collect the overdue tax. Options include filing liens and issuing levies to claim and seize the delinquent taxpayer’s property. In one new case, a federal appeals court ruled that the U.S. Tax Court properly sustained the IRS’s lien and levy on a married couple’s property to collect more than $500,000 in outstanding tax liabilities. The couple unsuccessfully argued that the statute of limitations for the IRS’s assessment of the tax had passed and that the IRS didn’t mail them adequate notice when it began auditing their business. (Goldberg, CA-7, 7/14/23)
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