IRS delinquent taxpayers

[pkbites]

Is there a website to look up if someone is delinquent on their Federal income tax?
Wisconsin has one for state taxes.

[Rand_Rover]

There’s not. The law provides a very stringent duty on the IRS to keep information about taxpayers secret, so I it would probably be against the law for any such website to exist.

[pkbites]

@Rand_Rover

There’s not. The law provides a very stringent duty on the IRS to keep information about taxpayers secret, so I it would probably be against the law for any such website to exist.

I’m going to ask for a cite on that. If the IRS initiated any kind of proceedings it should be public record like all court proceedings. But I checked under the Federal court System and found nothing. I’m wondering if there is a separate site for tax courts [Federal].

[Gfactor]

@pkbites

I’m wondering if there is a separate site for tax courts [Federal].

United States Tax Court

[Gfactor]

@pkbites

I’m going to ask for a cite on that. If the IRS initiated any kind of proceedings it should be public record like all court proceedings. But I checked under the Federal court System and found nothing. I’m wondering if there is a separate site for tax courts [Federal].

My previous post notwithstanding, it’s not as if the IRS files suit in tax court against delinquent taxpayers. Tax court is for taxpayers who dispute their tax obligations–the IRS doesn’t need to chase them in court.

[Rand_Rover]

For general provisions about a federal agency’s disclosure of info about a citizen, see the Privacy Act at 5 USC 552a.

A more specific rule under 26 USC 6103 forbids the IRS from disclosing “return information,” which is broadly defined to include just about any info about a taxpayer’s tax situation. A listing of each taxpayer against whom a deficiency has been assessed would disclose return information about each such taxpayer and would therefore violate this rule.

Also, Gfactor is right that a deficiency can be assessed against a taxpayer without going to any court (but the taxpayer has the right to go to court if he wants to).

[Gfactor]

(a) General rule
Returns and return information shall be confidential, and except as authorized by this title—
(1) no officer or employee of the United States,
(2) no officer or employee of any State, any local law enforcement agency receiving information under subsection (i)(7)(A), any local child support enforcement agency, or any local agency administering a program listed in subsection (l)(7)(D) who has or had access to returns or return information under this section or section 6104 (c), and
(3) no other person (or officer or employee thereof) who has or had access to returns or return information under subsection (e)(1)(D)(iii), paragraph (6), (12), (16), (19), or (20) of subsection (l), paragraph (2) or (4)(B) of subsection (m), or subsection (n),
shall disclose any return or return information obtained by him in any manner in connection with his service as such an officer or an employee or otherwise or under the provisions of this section. For purposes of this subsection, the term “officer or employee” includes a former officer or employee.

26 U.S. Code § 6103 - Confidentiality and disclosure of returns and return information | U.S. Code | US Law | LII / Legal Information Institute

(b) Definitions
For purposes of this section—
(1) Return
The term “return” means any tax or information return, declaration of estimated tax, or claim for refund required by, or provided for or permitted under, the provisions of this title which is filed with the Secretary by, on behalf of, or with respect to any person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists which are supplemental to, or part of, the return so filed.
(2) Return information
The term “return information” means—
(A) a taxpayer’s identity, the nature, source, or amount of his income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, whether the taxpayer’s return was, is being, or will be examined or subject to other investigation or processing, or any other data, received by, recorded by, prepared by, furnished to, or collected by the Secretary with respect to a return or with respect to the determination of the existence, or possible existence, of liability (or the amount thereof) of any person under this title for any tax, penalty, interest, fine, forfeiture, or other imposition, or offense,
(B) any part of any written determination or any background file document relating to such written determination (as such terms are defined in section 6110 (b)) which is not open to public inspection under section 6110,
(C) any advance pricing agreement entered into by a taxpayer and the Secretary and any background information related to such agreement or any application for an advance pricing agreement, and(D) any agreement under section 7121, and any similar agreement, and any background information related to such an agreement or request for such an agreement,
but such term does not include data in a form which cannot be associated with, or otherwise identify, directly or indirectly, a particular taxpayer. Nothing in the preceding sentence, or in any other provision of law, shall be construed to require the disclosure of standards used or to be used for the selection of returns for examination, or data used or to be used for determining such standards, if the Secretary determines that such disclosure will seriously impair assessment, collection, or enforcement under the internal revenue laws.

(Emphasis added) Id.

Some Collection Division field representatives noted that due to the same disclosure prohibitions, IRS is unable to publish the names of delinquent taxpayers to increase compliance and generate collections, a process that has been used with some success by a number of states and local taxing authorities.

http://www.gao.gov/archive/1999/a299256t.pdf

[ralph124c]

This is of interest to me, because a former MA state Senator (Diane Wilkerson) failed to file US federal tax returns for 4 years! (1991-94). Of course, she was a lawyer, and had an excuse (she didn’t realize that she had to). I am continually amazed by how lenient the IRS is, with connected policiticns -you ori would have had a massive fine or jail sentence.

[whorfin]

@ralph124c

This is of interest to me, because a former MA state Senator (Diane Wilkerson) failed to file US federal tax returns for 4 years! (1991-94). Of course, she was a lawyer, and had an excuse (she didn’t realize that she had to). I am continually amazed by how lenient the IRS is, with connected policiticns -you ori would have had a massive fine or jail sentence.

My tax professor noted that the IRS almost never files criminal charges against someone who just doesn’t pay.

That doesn’t mean such people get away with hit–the IRS goes after them for back taxes, penalties, interest, etc, etc (and are very effective in doing so)—however, criminal prosecution for tax is fairly rare–presumably, brought more often for the public impact of the prosecution/those who are openly challenging the tax law.

[gigi]

@ralph124c

I am continually amazed by how lenient the IRS is, with connected policiticns -you ori would have had a massive fine or jail sentence.

According to those ads on TV, you can settle for pennies on the dollar!

[pkbites]

Thanks to everyone who replied!

@whorfin

My tax professor noted that the IRS almost never files criminal charges against someone who just doesn’t pay.

That doesn’t mean such people get away with hit–the IRS goes after them for back taxes, penalties, interest, etc, etc (and are very effective in doing so)—however, criminal prosecution for tax is fairly rare–presumably, brought more often for the public impact of the prosecution/those who are openly challenging the tax law.

I know for a fact that somebody owes a lot of income tax going back to 1986. The Feds took quite a bit of property and money back then, but they still owe a lot. They own a home and have an income.

The IRS has done nothing to collect the remaining total owed. Why not? There have been no deals made with the IRS.

When this person dies will the Feds take the home?

[Tom_Tildrum]

@ralph124c

This is of interest to me, because a former MA state Senator (Diane Wilkerson) failed to file US federal tax returns for 4 years! (1991-94). Of course, she was a lawyer, and had an excuse (she didn’t realize that she had to). I am continually amazed by how lenient the IRS is, with connected policiticns -you ori would have had a massive fine or jail sentence.

Eleanor Holmes Norton, the DC delegate to Congress, was discovered to have a similar problem when she was first elected. She skated on charges, and the voters and the press like her, so she’s been re-elected ever since.

@whorfin

My tax professor noted that the IRS almost never files criminal charges against someone who just doesn’t pay.

Indeed. The Wesley Snipes case was unusual for just that reason. One really has to tick them off to reach that stage of proceedings.

@pkbites

I know for a fact that somebody owes a lot of income tax going back to 1986. The Feds took quite a bit of property and money back then, but they still owe a lot. They own a home and have an income.

The IRS has done nothing to collect the remaining total owed. Why not? There have been no deals made with the IRS.

When this person dies will the Feds take the home?

The statute of limitations only permits the IRS to go back seven years. There can be all sorts of reasons why an agency doesn’t go after someone, and it may have nothing to do with the particular person; lack of investigative resources, etc.

[Gfactor]

@Tom_Tildrum

The statute of limitations only permits the IRS to go back seven years. There can be all sorts of reasons why an agency doesn’t go after someone, and it may have nothing to do with the particular person; lack of investigative resources, etc.

10 years.

For assessments of tax or levy made after November 5, 1990, the IRS cannot either collect or levy any tax 10 years after the date of assessment of tax or levy. See Section 6502(a)(1) of the Tax Code and section 301.6502-1 of the Tax Regulations. Court proceedings must also be started by the IRS within the 10 year statute of limitations. Section 301.6502-1(a)(1) of the Tax Regulations.

http://www.wwwebtax.com/audits/statute_of_limitations.htm

Of course if the IRS has filed a tax lien, the story is a bit different.

Usually 10 years after a tax is assessed, a lien releases automatically if we have not filed it again. If we knowingly or negligently do not release a Notice of Federal Tax Lien when it should be released, you may sue the federal government, but not IRS employees, for damages.

http://www.irs.gov/businesses/small/article/0,,id=108339,00.html#Notice (Emphasis added.)

You can check local property records to see if there is a lien against the property. If there is, the IRS might take the property when the person dies. If the home is owned by a married couple, the law now permits the IRS to lien the interest of one spouse even though the other spouse is not liable for the tax. http://www.irs.gov/pub/irs-drop/n-03-60.pdf

That seems unlikely in this case because Wisconsin does not have tenancy by the entireties. http://www.usatoday.com/money/perfi/columnist/block/2003-09-16-block_x.htm ; http://adams.law.ou.edu/olr/articles/vol58/russell582.pdf (see note 7)