Wednesday, June 22, 2011

TIGTA Finds IRS Does Not Have A Perfect Record Regarding Seizure Provisions Of The Code

IRS does not always comply with the seizure provisions of Code Sec. 6330 through Code Sec. 6344, the Treasury Inspector General for Tax Administration (TIGTA) said in a recent audit. (Audit Report No. 2011-30-049) TIGTA arrived at this conclusion after reviewing a random sample of 50 of the 578 seizures conducted from July 1, 2009, through June 30, 2010. In the majority of seizures, the agency followed all legal and internal guidelines, the audit said, adding that TIGTA was unable to identify any cases in which taxpayers were adversely affected. However, auditors found instances in which the amount of the liability for which the seizure was made was not the amount on the notice of seizure. In addition, there were cases where the sale of the seized property was not advertised as required. “When legal and internal guidelines are not followed, it could result in the abuse of taxpayers' rights,” TIGTA said. The audit noted that in recent years, IRS has “implemented procedures and controls significantly improving compliance with legal and internal guidelines.” The audit can be found at

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