Best Tax Preparation Services in Nacogdoches, TX

New post: Court Rejects IRS Claim to Taxpayer's Property - If a bank loans money to a business to buy equipment when the business owes back taxes, can the bank foreclose on and repossess the equipment? Does the bank or the IRS have a superior interest in the equipment? This gets into questions of state and federal law. Generally, state law defines property rights and what rights parties have to property. Then, with respect to unpaid federal taxes, federal tax law is applied to the state-created property rights and interests. This can result in situations where the IRS asserts an interest in a taxpayer's property, even though the bank has a superior right to the property. The court recently addressed this in _ United States v. Dunn_, Case No. 22-CV-1152-JAR (D. Kan. 2023)--denying the IRS's claim that it had a superior right to property. FACTS & PROCEDURAL HISTORY This case involves a trucking company that got behind on its payroll taxes. The IRS assessed the payroll taxes and eventually filed notices of federal tax liens in the public records. After this, the trucking company purchased trucks and financed them with a bank. The bank repossessed on the trucks and sold them at auction. The federal government brought an action against a trucking company to enforce tax liens for unpaid payroll taxes. It also included a claim against the bank for allegedly converting the IRS’s interest in the trucks by auctioning them off. The key question was whether the IRS’s earlier-file...