IRS
practices
&
procedures:
Today’s
Presenters
Panelist Bob Adams
Partner
IRS Practice and Procedure Washington National Tax
Panelist Patti Burquest
Partner
Tax Controversy Services Washington National Tax
Co‐Moderator
Dean Fischbeck
Senior Vice President Bank of America
Federal Tax Audit and Controversy Executive
Co‐Moderator
Susanne Muller
Director, Senior Tax Counsel Citigroup
Agenda
Preparing
for
and
managing
an
IRS
examination
‐New IRS process for IDRs
‐Enforcement of delinquent IDR responses.
‐Non‐performing loan issues and developments
‐OREO property issues and developments
Successfully
resolving
IRS
examination
issues
‐Fast Track
‐IRS Appeals
Other
ADR
techniques
Managing
common
IRS
problems
‐TIN mismatch issues and penalties for 1099s and 1098s
‐Record retention
Suburban
Bank
Suburban
Bank
is
a
community
bank
operating
within
a
large
metropolitan
area.
The
bank
began
with
only
two
branches
in
an
area
where
the
population
is
growing
rapidly.
It
has
expanded
its
presence
in
the
area
through
mergers
with other
community
banks
and
by
opening
up
new
branches.
Suburban
issues
credit
cards,
mortgages,
commercial
and
auto
loans.
It
has
a
large
deposit
base
of
checking
and
savings
accounts.
Due
to
the
economic
downturn
in
the
area,
Suburban
now
holds
an
inventory
of
foreclosed
properties
and
non
‐
performing
loans.
It
also
receives
notices
of
garnishment
on
some
of
its
account
Problem:
IRS
opens
examination
Facts:
Suburban
receives
a
phone
call
from
a
local
IRS
agent
who
sets
up
an
appointment
to
meet
with
the
Tax
Director
of
the
bank.
‐Is this the start of an IRS examination?
‐Will the bank receive a written notice of examination?
‐What happens before the meeting?
New
IDR
process
Information
Document
Requests
(IDRs)
are
used
by
the
IRS
to
develop
information
for
the
examination
of
issues.
‐Old procedures – significant IDRs with a due date (which may or
may not have been agreed to). Often the due date for the
response slips. The IRS may send reminders. In certain situations,
it may issue a summons after repeated requests for the
information informally.
‐New procedures – new agreement process backed by automatic
New
IDR
process
Effective for all IDRs issued after June 30, 2013, including those related to currently
open audits.
Actions that must be performed in issuing IDRs
‐Identify and state the issue that has led the examiner to request the
information included in the lDR
‐Discuss the lDR with the taxpayer in advance of issuing it
‐Both parties must discuss and determine a reasonable timeframe for
response
•This date cannot be reset
Existing MOUs related to IDRs that do not comply are terminated
All LB&I examiners and specialists should have completed training on this by now
New
IDR
enforcement
process
Effective for all IDRs issued on or after October 1, 2013, including those
related to currently open audits.
Enforcement of terms of IDRs has three steps
‐Delinquency Notice
‐Pre‐Summons Letter
‐Summons
IRS management personnel involved at each stage
IDR enforcement process includes IRS Counsel support
All LB&I examiners and specialists should have completed training on this by
now
New
IDR
enforcement
process
– Delinquency
Notice
Delinquency Notice – IRS Letter 5077
‐IDR expires, is incomplete or unresponsive, IDR is “delinquent” and enforcement
process begins immediately
•Partial responses are delinquent regardless of the percent complete
‐Case Manager, Team Coordinator (meaning the lead controlling agent for any
case), any Specialist and Specialist Manager must discuss the unresponsiveness
with taxpayer on the day after deadline, but within 10 days
‐Delinquency notice must be given to taxpayer within 10 days of the originally
agreed IDR deadline, no exceptions
•Signed by Team Manager for IRS
•Delinquency notice allows the taxpayer up to an additional 15 calendar days
to respond to the IDR or the process moves on to the next step
•If IRS team or taxpayer wishes to extend this time it can only be done with
Territory Manager approval and only in the most extreme or unusual
circumstances
•IRS team discusses next steps with taxpayer: Pre‐Summons Letter then
Summons
New
IDR
enforcement
process
– Pre
‐
Summons
Letter
Pre
‐
Summons
Letter
– IRS
Letter
5078
‐Consequence of not responding to the Delinquency Notice is issuance of
a Pre‐Summons Letter
•Prepared by audit team and Counsel
•Signed and issued by Territory Manager
•Discussed with and delivered to next level of taxpayer’s
management
‐Makes taxpayer management aware IDR has not been
answered
‐Final notice to respond to the IDR before Summons is issued
‐Taxpayer has 10 calendar days to respond
‐No taxpayer response, audit team and counsel prepare and issue
Summons
•Territory Manager must notify Director of Field Operations (DFO)
New
IDR
enforcement
process
– Summons
Summons
‐If taxpayer fails to respond to the IDR after the issuance of the Pre‐
Summons Letter the audit team prepares and issues a Summons with
counsel's involvement
‐Counsel is adviser, does not steer or commandeer an audit
IDRs are allowed to be more extensive than Summons
‐Summons must meet Powell tests so are narrower than IDRs
Counsel will work with audit team all along the way to be best
prepared in case a Summons is needed
These IDR enforcement procedures are designed to assure that IRS
will follow‐though with the Summons process if necessary to complete
Managing
“problem”
IDRs
under
the
new
process
The
“fishing
expedition”
IDR
where
it
is
clear
that
the
IRS
is
not
developing
a
particular
issue,
but
looking
for
new
issues
that
it
can
develop.
The
overbroad
IDR
asking
for
“any
and
all”
documents
relating
to
a
particular
issue.
The
“unclear”
IDR
where
the
response
could
take
several
paths,
at
least
one
of
which
would
produce
an
examination
adjustment.
The
“late
in
the
game”
IDR
which
is
provided
close
to
the
“last
Problem:
non
‐
performing
loans
Facts:
Suburban
has
non
‐
performing
loans
on
Tax
treatment
of
nonperforming
loans
Issues
to
address:
‐Accrual of interest
‐Tax treatment of charged‐off receivable
Problem:
non
‐
performing
loans
Treas.
Reg.
§ 1.166
‐
2(d)(1)
(cont.)
‐Conclusively presume debt is worthless/partially worthless for tax
purposes if able to show debt was charged off in whole or part
•Either pursuant to specific orders or established policies of
banking regulators
Problem:
non
‐
performing
loans
Treas. Reg. § 1.166‐2(d)(1) (cont.)
‐Issues with proof
•Banks generally receive examination report at end of regulatory
exam
‐Includes list of ordered and agreed charge‐offs
‐Confidential document
‐IRS exam agents not permitted user
•IRS exam agents typically require separate confirmation letter
documenting ordered charge‐offs unless regulator provides written
permission for IRS exam agent to review pages from the report that
Accrual
of
interest
for
tax
purposes
Have
all
events
occurred
to
fix
the
right
to
the
income?
Can
the
amount
of
income
be
estimated
with
reasonable
accuracy?
Is
there
doubt
as
to
collectibility?
(Collectibility
exception.)
General
rule
for
term
loans:
right
to
receive
becomes
fixed
as
it
is
earned
under
the
loan.
See
Rev.
Rul.
72
‐
100;
IRS
guidance
on
non
‐
performing
loans
Revenue Ruling 80‐361
‐Facts: Taxpayer uses the accrual method of accounting and makes a loan
to A in Year1. Initially, interest and principal are collectible. Late in Year 2,
A suffers sudden and severe financial reverses, becomes insolvent, and
defaults on the loan. The security is sufficient to satisfy only the principal
amount of the loan.
‐Holding: Taxpayer must accrue interest up to the time of A’s insolvency.
Interest related to the time after A’s insolvency does not properly accrue,
since the interest is uncollectible and no accrual of interest for tax
purposes.
‐To the extent that the accrued interest subsequently becomes
uncollectible due to A’s insolvency, then Taxpayer may deduct the accrued
IRS
guidance
on
non
‐
performing
loans
(cont.)
Rev.
Rul.
2007
‐
32
‐Facts: Bank expects the borrower to make some, but not all, of the
payments due under the loan. Bank stops accruing interest on the
loan pursuant to federal banking rules. Bank has not written the loan
off for regulatory purposes.
‐Holdings: Bank must continue to accrue interest for tax purposes
(despite federal banking rules forbidding the accrual). Late payment
of interest is not sufficient by itself to demonstrate that bank has no
reasonable expectation of payment on the accrued interest. Doubtful
collectibility exception does not apply. Bank may claim a bad debt
deduction for accrued amounts which subsequently become
Doubtful
collectibility exception
Lender
does
not
need
to
accrue
interest
if
there
is
no
reasonable
expectation
of
payment
‐“A taxpayer, even though keeping his books on an accrual basis,
should not be required to pay a tax on accrual income unless it is
good and collectible, and, when it is of doubtful collectibility or it
is reasonable certain it will not be collected, it would be an
injustice to the taxpayer to insist upon taxation.” Corn Exchange Bank v. United States, 37 F.2d 34 (2nd Cir., 1930)
Collections
Reg.
§1.446
‐
2(e)
provides
that
payments
on
a
loan
are
interest
to
the
extent
interest
is
“accrued”
on
the
loan
as
of
the
date
the
payment
is
due.
Restates
existing
law.
Story
v.
Livingston
,
38
U.S.
359
(1839)
‐“The correct rule as to interest is that the creditor shall calculate interest
whenever a payment is made. To this extent the payment first to be
applied, as if it exceeds the interest due, the balance is to be applied to
Collections
If
borrower
is
insolvent,
and
the
bank
has
foreclosed
on
the
collateral
(and
bank
will
never
get
back
the
full
amounts
his
principal),
later
collections
are
allocated
to
principal
and
not
to
accrued
but
unpaid
interest,
even
in
the
case
where
lender
and
borrower
agreed
to
an
allocation
of
the
payment
between
interest
and
principal.
Newhouse
v.
Comm’r
,
59
T.C.
783
(1973);
John
Hancock
Collections: Rev.
Rul.
2007
‐
32
Rev. Rul. 2007‐32
‐Facts: Facts remain the same, but bank receives a payment on one of the
loans the interest of which it wrote off as uncollectible.
‐Holding: Even though for regulatory purposes, Bank applies the payment
to principal, under Reg. §1.446‐2(e), bank must characterize any payment
(other than late charges) as a payment of interest for federal income tax
purposes to the extent there is uncollected accrued interest outstanding.
‐However, if Bank receives a payment that is less than the accumulated
accrued unpaid interest legally due under the loan contract, for regulatory
Collections:
Rev.
Rul.
2007
‐
32
(cont.)
Rev.
Rul.
2007
‐
32
‐
Facts
remain
the
same,
but
bank
uses
a
conformity
method
of
accounting
as
provided
in
Reg.
§1.166
‐
2(d),
but
does
not
accrue
interest
income
for
bank
regulatory
financial
statements.
(Important
fact
– bank
reasonably
expects
to
receive
some
but
not
all
of
the
payments,
but
has
not
so
received
them.)
‐
Holding:
Bank
must
accrue
interest
for
tax
purposes
but
can
charge
‐
off
accrued
interest
as
if
it
had
been
written
off
for
Recap
IRS
examination
of
nonperforming
loans
Primary
question
(factual)
‐Is it collectible?
IRS
requires
loan
‐
by
‐
loan
review.
‐Non‐performing loans directive #1 (2010)
‐Rev. Rul. 2007‐32
‐MSSP training guide
‐Coordinated Issue Paper
Problem:
Costs
associated
with
OREO
property
Facts:
during
the
past
several
years,
Suburban
has
acquired
approximately
30
properties
through
foreclosure.
Suburban
holds
the
property
for
future
sale.
It
does
not
attempt
to
rent
the
properties.
How
should
Suburban
treat
expenses
associated
with
the
Problem:
capitalization
of
costs
for
on
OREO
property
IRS Historic Position:
OREO property is property described in § 1221(a)(1)
‐Property held primarily for sale to customers in the ordinary course of
business or acquired for resale
Treatment of expenses related to foreclosure property
‐Section 263A applies to real or personal property described in § 1221(a)(1)
acquired for resale
‐Query whether property is acquiredfor resale
‐Rev. Rul. 74‐159 holds that foreclosure property is property heldfor
resale as described in § 1221(a)(1)
‐If § 263A applies, the direct costs and allocable share of indirect costs of such
property are capitalized
Problem:
capitalization
of
costs
on
OREO
properties
On
audit,
many
IRS
exam
teams
have
been
requiring
banks
to
capitalize
the
direct
and
indirect
costs
of
carrying
foreclosure
property
‐For example: property taxes, general maintenance, utility
expenses, etc.
In
response,
many
banks
have
either
acquiesced
to
the
issue
on
audit
(on
a
method
change
or
non
‐
method
change
Problem:
Capitalization
of
costs
on
OREO
property
FAA
20123201F
(June
18,
2012)
‐Field Attorney Advice issued by LB&I concluded that § 263A
requires capitalization of direct costs and an allocable share of
indirect costs associated with a bank’s foreclosure property
(OREO)
‐However, the FAA notes that properties held for the production of
Problem:
capitalization
of
costs
on
OREO
property
GLAM2013
‐
001
(Released
March
1,
2013)
‐Discusses the application of § 263A to property acquired by a
bank through foreclosure proceedings or by a deed‐in‐lieu of
foreclosure. States that that the bank is not a traditional reseller
of property
•The bank acquires the OREO “in its capacity as a lender and
not as a traditional reseller of property”
‐The bank is economically compelled to acquire the
Problem:
capitalized
costs
associated
with
OREO
property
GLAM2013‐001 (cont.)
‐The GLAM reasons:
•When a bank originates loans, those loans are not treated as the “acquisition of
property for resale” for purposes of § 263A
•Acquisition of the property securing the loan should not convert the bank into a
reseller
‐Section 263A does not require capitalization of the direct or indirect costs to carry
foreclosure property where the bank originated the loan upon which it foreclosed
‐Facts of the GLAM are limited to situations where the bank originated the loan upon
which it foreclosed
‐The GLAM does not contain an effective date; however, the FAQs posted on the IRS
website instructs agents who have issued Forms 5701 (notice of proposed
adjustments) which proposes to capitalize OREO expenses should reconsider the
Problem:
capitalization
of
costs
associated
with
OREO
property
What
does
this
mean
for
banks?
‐Banks that currently deduct direct and indirect costs
‐Banks currently under exam with a method of capitalizing the
costs associated with OREO
‐Banks not under exam with a method of capitalizing the costs
Problem:
options
for
resolving
IRS
Resolution
Strategies
Pre
‐
30
day
letter:
‐Pre‐filing Agreement (PFA)
‐Fast Track settlement
‐Delegation orders
Post
‐
30
day
letter
‐IRS Appeals
Problem:
Problem:
Taxpayer
identification
number
(TIN)
issues
Facts:
Suburban’s
depositors
and
mortgage
customers
are
provided
with
a
Form
W
‐
9
when
they
open
an
account.
In
February,
Suburban
issues
1099s
and
1098s
to
each
depositor
or
mortgage
customer
and
files
a
copy
with
the
IRS.
The
IRS
recently
sent
Suburban
a
Notice
972CG,
informing
it
that
more
than
1000
1099s
and
1098s
contained
incorrect
or
missing
TINs.
A
penalty
of
$100,000
Discussion:
supporting
reasonable
cause
to
obtain
waiver
of
proposed
penalty
Suburban must establish that it acted in a responsible manner before and
after the TIN reporting failure occurred.
‐Initial solicitation letters to customers?
‐Ensuring W‐9s are complete and appear correct?
‐History of compliance without TIN failures?
‐Actions taken to ensure proper TINs?
‐Annual solicitations to avoid penalties in future years?
‐For missing TIN/name combination a second solicitation letter may be
required
Respond within 45 days of the date of the notice.
Discussion:
back
‐
up
withholding
Suburban receives Notice CP 2100
Send “B” notices to customers on list at the last known address in your
records.
‐Inform account holder that IRS has notified bank of incorrect TIN. ‐Attach a copy of filled‐in W‐9 (or substitute)
‐Request return of corrected W‐9
‐Provide return envelope
‐Inform customer that you must begin back‐up withholding if you do
not receive completed W‐9 back from them
‐Keep copy of this letter in your files
Discussion:
alternative
ways
to
obtain
information
(1099s)
Annual solicitations by telephone
‐Call each payee with a missing or incorrect name/TIN combination
‐Prepare telephone script for the callers and retain the script in your
records showing each call made
‐Call script should request to speak with an adult in the household or an
officer of the business enterprise; should request customer’s TIN and
other information that is missing from the W‐9 (or other form) or is
incorrect; inform payee of $100 penalty if TIN is not provided
‐Complete solicitations by December 31 (first solicitation) or January 31
for accounts opened the preceding December
Electronic solicitations
‐Email or fax
What
if
penalties
are
not
abated?
If
you
receive
a
CP
15
or
CP
215
fully
or
partially
denying
the
request
for
a
waiver
of
penalties,
this
can
be
appealed
Problem:
Problem:
record
retention
issues
Facts:
Suburban
has
been
growing
by
opening
new
branches
and
by
acquiring
smaller
community
banks
in
its
geographic
area.
Suburban’s
systems
and
products
replace
those
of
the
target
bank’s
within
24
hours
of
the
acquisition.
Can
Suburban
turn
off
the
target
bank’s
systems?
How
should
it
prepare
for
a
potential
audit?
‐
More
warehouse
space?
‐
Digitized
records?
General
IRS
guidance
on
record
retention,
IRC
section
6001
General
tax
guidelines
for
record
retention
‐Sound record retention policy, cornerstone for successful
management of IRS exams
•Maintain records the proper amount of time and in the right
format
•IRC section 6001, records must be available at all times for
inspection by the IRS
•Burden of proof is on taxpayer to determine length of time to
keep records
•Issue becomes more complex with a corporate merger, where
conflicting record systems, obsolete technologies raise new
General
IRS
guidance
on
record
retention,
IRC
section
6001
Section 6001, records must be maintained so long as they may be material in
administration of tax law
‐General rule, keep any record that supports an item of income or deduction
until the statute of limitations expires (generally three years from the date the
return is filed)
‐But may be necessary to keep longer
•Keep records of basis in assets (e.g., buildings, land, fixtures) almost
indefinitely, substantiate capital gain or loss on the asset’s final
disposition
•Net operating losses and other carryback items can often extend the
time frame that records are kept for the carryback years
•Employee wage and salary information provided to the Social Security
Administration, other federal agencies and to state tax administrations
General
IRS
guidance
on
record
retention,
Revenue
Procedures
IRS
has
issued
detailed
guidance
through
revenue
procedures
relating
to
machine
sensible
records,
electronic
storage
of
imaged
documents,
and
microfiche
records
Rev.
Proc.
98
‐
25,
1998
‐
1
C.B.
689
Rev.
Proc.
97
‐
22,
1997
‐
1
C.B.
652
Rev.
Proc.
81
‐
46,
1981
‐
2
C.B.
621
Machine
sensible
records
Rev.
Proc.
98
‐
25,
1998
‐
1
C.B.
689
Machine sensible records and EDI transactions are records for 6001
and must be maintained in a format capable of being processed (i.e.,
accessed, retrieved and printed) during an examination.
Flat (sequential) files may meet this requirement.
Must include transactional detail supporting a clear audit trail
between the source document and the electronic record. (Source
documents also must be maintained.)
External
storage
media
and
scanned
images
Rev.
Proc.
97
‐
22,
1997
‐
1
C.B.
652
Guidelines for taxpayers whose hard copy original records are scanned into an
electronic storage system, or whose electronic records are transferred to an
external storage medium, such as laser or optical disks
‐Scanned or transferred image must reliably transfer, store, preserve and reproduce
the original record, and must have
‐“a high degree of legibility when reproduced”
‐Legibility and readability is required for both paper reproductions and for records
displayed on a video display terminal
The electronic storage system must have an indexing system that allows
‐Retrieval of the records and
‐Ability to reproduce the record in hard copy form upon the request of the IRS
A procedural manual which explains the use of the electronic storage system
must be made available to the IRS during an audit, as well as resources needed
Microfilm
records
Rev.
Proc.
81
‐
46,
1981
‐
2
C.B.
621
Microfilm records, which include microfiche, magnetic tape and other
micrographic systems, not commonly used for today’s storage needs,
but many older generation records still reside on the medium
In compliance with Section 6001 if they are exact duplicates of the
original ledgers or books (e.g., journal, cash books, voucher registers),
and are readable and legible
Taxpayer to develop a set of operating procedures for the microfilm
records, including indices that can be used by the IRS to immediately
retrieve documents
A workable microfilm reader and printer must be available for the use
Put
recordkeeping
in
perspective
Records
retention
is
essential
for
compliance
with
the
tax
law
Records
management
can
be
expensive
(in
terms
of
warehouse
space,
systems
maintenance
and
operational
personnel)
Taxpayers
should
not
feel
compelled
to
retain
records
longer
than
is
reasonable
and
necessary
to
comply
with
the
law
A
prudent
corporate
policy
is
to
regularly
review
recordkeeping
budgets
and
practices
against
IRS
guidelines
A
corporate
records
destruction
policy
should
be
created
and
maintained,
according
to
schedules
in
the
policy
Overall,
records
management
may
have
complex
tax,
Other
considerations
Tax
return
“bridge”
workpapers
‐DFO memo, February 23, 2012
‐Requires CAS obtain electronic version of bridge workpapers
Taxpayer
records
for
which
IRS
auditors
cannot
generally
compel
production
‐Privileged documents
•IRS Announcement 2010‐76: http://www.irs.gov/pub/irs‐drop/a‐10‐
76.pdf
•http://www.aicpa.org/Publications/TaxAdviser/2013/April/Pages/clinic‐
story‐08.aspx
‐IRM 4.10.20.3
•Auditors workpapers
•Tax accrual workpapers
Problem:
Problem:
managing
liens
and
levies
on
customer
accounts
Facts:
Suburban
has
recently
received
IRS
notices
of
federal
tax
lien
on
several
customer’s
accounts.
Can
the
IRS
levy
on
the
customer’s
account?
How
should
Suburban
Lien
vs.
levy
Lien:
a
claim
by
the
IRS
used
as
security
for
a
tax
debt
of
the
account
holder.
Steps
in
the
levy
process
Bank
customer
with
unpaid
tax
debt
will
receive:
‐Notice and Demand for Payment is first mailed to a taxpayer who
has neglected or refused to pay tax, generally on the date the IRS
assesses the tax
‐Notice of Federal Tax Lien is filed in public record where the
customer has property. The notice can be provided to the bank.
‐Final Notice of Intent to Levy and Notice of Your Right to a Hearing (this is a levy notice) is sent to the taxpayer at least 30 days before
the levy. This notice can be sent to the customer via certified or
registered mail or delivered to the customer in person.
•CDP Hearing: the customer can request a hearing where it can present
evidence that the lien was filed in error or that the presence of a lien and
potential levy could cause economic hardship. (IRS Appeals officer
handles the CDP hearing where the issue is settled or the Lien upheld.)
Bank
levies
Which
accounts
can
be
levied?
‐The levy attaches to funds in a bank account for which the customer/debtor has an
unrestricted right to withdrawn funds (signature authority) even if multiple persons have
signature authority for that bank account. Reg. 301.6332‐1(c)(4).
Bank
must
wait
21
days
after
levy
is
served
before
sending
payment.
But,
on
next
business
day,
it
must
make
the
payment
using
the
customer’s
funds.
‐During the 21 day period the levy may be released or reduced
‐If no release during 21 days, bank must make payment without additional notice.
‐Levy can only reach the amount on deposit when the levy is served
‐Additional levies required to reach subsequent deposits
‐Customer/debtor may request that the bank extend the 21 day hold period to
determine ownership of the account.
‐IRS may provide notice to the other account signatories/owners so that they can
Bank
levy
examples
Facts:
bank
levy
for
$10,000
‐
A.
Customer/debtor
has
$5,000
in
the
bank
•Bank sends $5,000 plus interest earned during the holding period.
‐
B.
Customer/debtor
has
$25,000
in
the
bank
•Bank sends $10,000 only. No interest.
‐
C.
Customer/debtor
has
$9,999
in
the
bank
•Bank sends $10,000 if at least $1 of interest is earned on the
account during the holding period
During
the
21
day
holding
period,
the
bank
is
to
treat
the
IRS
as
the
depositor
up
to
the
amount
of
the
levy.
Thus,
cannot
defeat
the
payment
of
interest
to
IRS.
If
bank
charges
a
levy
fee,
cannot
reduce
the
levy
More
bank
levy
procedures
Exemptions
from
levy
‐Even though customer/debtor’s income may have some
exemptions from levy, any amount deposited into the customer’s
account is treated as not exempt
‐IRS can release (full or partial) amounts from levy to prevent
hardship to the customer/depositor
‐Mortgage escrow accounts
•Interest and taxes escrows cannot be levied unless there is an
excess surplus, which can be levied
•If the property is sold, the levy can also reach excess escrow
Today’s
Presenters
Panelist Bob Adams
Partner
IRS Practice and Procedure Washington National Tax
Panelist Patti Burquest
Partner
Tax Controversy Services Washington National Tax
Co‐Moderator
Dean Fischbeck
Senior Vice President Bank of America
Federal Tax Audit and Controversy Executive
Co‐Moderator
Susanne Muller
Director, Senior Tax Counsel Citigroup
