October 27, 2009

Who Owes the IRS

Several notable individuals have high-stakes debts with the IRS. Under normal circumstances, when someone owes the IRS money, the agency issues a tax lien for the outstanding amount against the taxpayer. A tax lien is basically a notification to all creditors that the IRS has a claim against the assets of a taxpayer up to the amount owed in unpaid taxes. So long as the amount claimed remains unpaid, a tax lien will also claim on future assets. Such liens will affect a taxpayer's credit rating and implies difficulties in certain transactions like obtaining loans, applying for credit cards etc.

If you have been issued a tax lien, you may negotiate a settlement arrangement with the IRS. If you fail to make payment, the lien accrues interests and penalties which would add to the amount you owe in the lien.

Buckingham County Supervisor Joe Chambers Jr. has been issued the latest of a series of liens against him in June this year by the IRS. This particular lien is for $226,001.44 in taxes the IRS claims Chambers owes them between 2001 and 2004. Records show that previous liens amounting to $59,544 and $9,019 issued against Chambers in 1999 are still outstanding. The current status of these previous liens is not immediately available because the IRS does not update liens until the entire amounts have been fully paid. Having a tax lien against a person does not disqualify one from holding public office as in Chambers' case but if convicted of a felony after all appeals have been exhausted, such a person is automatically removed from his or her office. However, Chambers is facing a felony larceny charge of illegally harvesting 5 acres of timber along Route 601 in September 2007 in Buckingham County. The case has been classified as 'continued generally' in online court records for the last several months.

According to Buckingham County Treasurer Christy Christian, Chambers has been making monthly repayments to clear his tax debts.

Besides a tax lien, another recourse the IRS may take to recoup unpaid taxes is of course to go to court. This was what happened with Mel Blount, the Football Hall of Famer for the Steelers. Last week, the IRS initiated court proceedings to recover $631,101.25 in taxes owed between 1994 and 2006. According to the IRS and the Treasury Secretary, Blount had not paid the correct amount of income tax he was liable for every single year from 1994 to 2006, except for 1997. Records show that he owed $205, 705 in taxes in 2006; the least amount of taxes he owed was $4,797 in 1998.

Mel Blount, 61, was the NFL's defensive Most Valuable Player in 1975 and still holds the Steelers team record of 57 career interceptions. In 1989, he was received into the Pro Football Hall of Fame.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

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