Tax Division Judgement Collection Manual
A judgment is “any order from which an appeal lies.” Fed. R. Civ. P. 54. Fed. R. Civ. P. 58 provides that a judgment “shall be set forth on a separate document.” A judgment “should be a self-contained document, saying who has won and what relief has been awarded, but omitting the reasons for this disposition, which should appear in the court’s opinion.”13 Nevertheless, Rule 58, as amended effective December 1, 2002, provides that a judgment or amended judgment will be considered entered either when set forth on a separate document and entered on the docket or even if not set out on a separate document as required after 150 days from the docket entry. Rule 58 thus statutorily modifies United States v. Indrelunas, 411 U.S. 216 , which had effectively safeguarded a judgment debtor against forfeiture by requiring a judgment to be entered on a separate document, with no stated time limit . TheIndrelunas court had held in that case that the final appealable order was the money judgment entered some two years after the jury verdict, and not the civil docket entry “Enter judgment on the verdicts. Jury discharged.”
Accordingly, unless otherwise specified, the term “judgment” as used in this Manual means either a final decision that disposes of all claims of all parties in a lawsuit, or a 54 decision.
C.The Judgment Should Include an Award of Costs
D.Ten-Percent Surcharge for Costs of Collection
1.Automatic Stay of Collection of a Judgment
Time Limitation On Assessment
In all non-TEFRA cases decided by the Tax Court, assessment must be made within the 60-day period after the decision of the Tax Court becomes final. As discussed above, in general, the decision becomes final 90 days after the decision is entered in cases in which no appeal is filed. See section 7481.
In some cases, the time period for making an assessment may be extended. In that regard, see sections 6501, 6229, 6213, and 6503 with respect to limitations on assessment, and the manner in which the time for making an assessment may be extended.
Tacking refers to the additional period of time provided by the unexpired portion of the three-year limitation period at the time the notice of deficiency was issued. For example, if the three-year limitation period on assessment would expire on July 31, 2000, and the notice of deficiency is issued on June 30, 2000, the unexpired portion of the limitations period is 31 days. This 31-day period may be tacked on to the 60-day period for assessment following the finality of the Tax Courts decision. The attorney should keep in mind, however, that assessment should never be delayed in reliance on tacking, despite its potential application. It is the position of this office to have the deficiency assessed at the earliest opportunity.
35.9.2.3
Fraudulent Conveyances And Voluntary Conveyances
The creditor has certain rights to set aside fraudulent conveyances and voluntary conveyances by the debtor. A fraudulent conveyance occurs where the debtor transfers property that could otherwise be reached by the creditor in order to avoid the creditor’s levy. The debtor voluntarily conveys property where he sells it for less than fair market value after becoming insolvent, or where the sale of that property itself causes the debtor to become insolvent. A creditor who is able to prove that a fraudulent or voluntary conveyance has occurred may be able to avoid or upset the conveyance, which will restore the property to the debtor’s possession, from which the creditor may levy on it.
Voluntary conveyances whereby a debtor chooses to pay one creditor instead of another can not be undone, except where self dealing is involved. For example, where a corporation is insolvent, and one of its creditor’s is also a controlling shareholder, that creditor can not compel the corporation to give the debts owed to him any preferential treatment.
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Judgment Concerning The Republic Of Moldova
In the case of G.M. and Others v. the Republic of Moldova, the Court found a violation of the prohibition of inhuman or degrading treatment in both its substantive and its procedural aspects.
The case concerned the imposition of abortions and birth-control measures on three intellectually disabled women, residents in a neuropsychiatric asylum, after they had been repeatedly raped by one of the head doctors there, and the investigation into their complaints.
The Court found that the domestic criminal law had not provided effective protection, and the inquiry had not factored in their vulnerability as intellectually disabled women exposed to sexual abuse in an institutional context.
Prevent And Report Identity Theft
Consumers should never make payments over the phone or via email to a third party debt collector that refuses to provide a written validation notice. Even if the party seems to have some of your personal or financial information, you should not make payments or provide bank account or credit card information without receiving a written validation notice. If the scammers already have your bank account information, social security number, or other nonpublic information, you may be a victim of identity theft. The Federal Trade Commission has information for victims of identity theft available online at www.ftc.gov.
If you feel you have been the victim of a financial scam and are concerned about your personal financial information, contact your bank and the three major credit bureaus. Procedures for contacting the credit bureaus are available on the FTCs website at www.ftc.gov.
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Intangible Personal Property That Is And Is Not Subject To Garnishment
Garnishment is generally directed to the debtor’s bank accounts and accounts receivable. Many other forms of intangible property can not be reached through this mechanism, or at all. Garnishment is ineffective with respect to stock certificates or other negotiable instruments those must be by physically seized through the procedures for seizure of personal property. Where the debtor has a joint bank account, the creditor may only seize the portion of the account which was contributed by the debtor, and other holders of the account may present evidence to establish the amount that they contributed where the bank account is jointly held by a husband and wife, each spouse is presumed to have contributed 50%. Either spouse may present evidence to overcome this presumption, as may the judgment creditor.
Garnishment can not be used to take ownership of copyrights owned by the debtor, or of insurance policies. Neither can it be used to garnish choses in action. Wages can be garnished, but the amount that can be seized in this manner is limited to the lesser of 25% of the debtor’s weekly earnings, or the amount by which the debtor’s weekly earnings exceed thirty times the national minimum wage.
Income Escaping Assessment U/s 147
Subject to provisions of section 148 to 153, if any assessing officer believes that any income, chargeable to tax, has escaped assessment for any assessment year, he may:
a) assess or reassess such income which has escaped assessment
b) recompute the loss or depreciation allowance or any other allowance as the case may be, for the assessment year concerned i.e. the relevant assessment year
Deemed cases of escapement:
a) where no return has been filed and no assessment is done but his total income or total income of any other person in respect of which he is assessable, exceeds the maximum amount which is not chargeable to tax
b) where a return of income filed but no assessment is done and assessing officer noticed understatement of income or excessive claim of loss, deduction, allowance or relief etc.
c) where assessee fails to report international transactions u/s 92E
d) where assessment u/s 143 / 144 has been made but income chargeable to tax:
has been under assessed or
has been assessed at low rate or
has been assessed with excessive relief or
excessive loss or depreciation or other allowance has been computed
Note: if any case is pending under appeal / revision then that case cannot be opened under section 147.
Notice u/s 148
Note:
i) even though notice u/s 139 or 142 have been issued, then also notice under section 148 is must.
iii) As per section 148, assessing officer is required to record the reasons for issuing notice u/s 148.
Proviso to section 147
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Best Judgment Assessment U/s 144
Where any person
fails to make the return required u/s 139 / 139 or 139 depending upon circumstances, or
fails to comply with
all the terms of a notice issued u/s 142 or
directions issued under sub-section of that section], or
fails to comply with all the terms of a notice issued under sub-section of section 143,
the Assessing Officer, after taking into account all relevant material which he has gathered, shall, after giving the assessee an opportunity of being heard is already served), make the assessment of the total income or loss to the best of his judgment and determine the sum payable by the assessee on the basis of such assessment :
Provided that such opportunity shall be given by the Assessing Officer by serving a notice calling upon the assessee to show cause, on a date and time to be specified in the notice, why the assessment should not be completed to the best of his judgment.
Note: The assessing officer under this section cannot assess income below the returned income or cannot assess the loss higher than the returned income.
No order of assessment/ reassessment under section 144 shall be made after the expiry of 21 months from the end of relevant Assessment Year.
Example: Last date for assessment order u/s 143:for FY 2015 -16 31stfor FY 2016 -17 31stfor FY 2017 -18 30thfor FY 2018 -19 31st
| Situation | |
| If assessment carried out after 2 years of completion of assessment year | Assessment is Void |
Information About Federal Debt Collection Law
If you received a loan from a lender or owed money to a business and someone other than the lender or business is now attempting to collect from you, the collection activity may be subject to the federal Fair Debt Collection Practices Act. If you receive a communication from a party claiming that a debt is owed, you can request a written validation notice, which must include the amount of the debt, the name of the creditor you owe, and your rights under the FDCPA. If you have questions regarding federal debt collection laws, you can contact the Federal Trade Commission at 1-877-FTC-HELP or online at www.ftc.gov.
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Garnishment Of Intangible Personal Property
The judgment creditor may also seek to execute the money judgment against intangible property, such as bank accounts, accounts receivable, and other debts owed to the judgment debtor by third parties. The creditor must request that the clerk of the court who issued the fi fa follow this up by issuing a “summons in garnishment” directed against the holder of money that is due to the judgment debtor. This third party is known as the garnishee. Service of process must be effected on both the garnishee and the judgment debtor, and the notice to the judgment debtor must promptly follow notice on the garnishee. The notice will instruct the garnishee not to release funds due to the debtor, and it will set a date for the garnishee to appear in court and contest the garnishment, if it so chooses. If the garnishee appears in court and admits liability , of if the garnishee does not appear in court at all, the court will issue a judgment on the writ. The sheriff will then go to the bank and collect the money for the judgment creditor.
For Anyone Who Doesnt Owe Taxes And Has No Reason To Think They Do Should:
- Contact the Treasury Inspector General for Tax Administration to report the letter. The taxpayer should use their IRS Impersonation Scam Reporting webpage. When reporting the scam, they should include the key words IRS Lien.
- Scan a document received as a letter or fax and send it to .
- Report it to the Federal Trade Commission using the FTC Complaint Assistant on FTC.gov.
- Report it also to the FBI’s Internet Crime Complaint Center, known simply as IC3.
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Requirement Of A Public Act
Generally, a creditor who has obtained a monetary judgment may enforce this judgment through the seizure and forced sale of the debtor’s property, through the seizure of money held in the debtor’s bank accounts, and through garnishment of the debtor’s wages. In each instance, however, the creditor is required to engage in a “public act”, such as the recording of a lien on the title to the debtor’s real estate to be seized, or using other public notice to place a lien on debtor’s personal property. Thus, the required public act fixes a lien on the debtor’s property. Not only does this establish the rights of the creditor to seize and sell the property, it also determines what priority the creditor will have against other creditors who may wish to seize the same property.
Another Tax Scam Letter Tax Assessment Procedures Domestic Judgment Registry
Another scam letter is making its rounds among unsuspecting individuals. The letter purports to be from Tax Assessment Procedures Domestic Judgment Registry. The letter appears to be sent from a county office where the addressee resides. However, no return address is provided in the letter.
Although the letter states a certain dollar amount of tax is supposedly due, the letter does not identify which taxing authority is seeking payment other than stating federal taxing authorities. The letter also does not identify which tax period is owed. For type of taxes, the letter merely states individual without identifying whether it is referring to income tax, property tax, or another type of individual tax. The letter threatens levy, wage garnishment, or seizure of assets unless the addressee calls the phone number on the letter to pay the alleged taxes.
If you receive a letter from an agency that you have never heard of, you should do a search for the telephone number provided on the letter to see if it comes up as a scam phone number. You should also report the scam letter to your local law enforcement agency. If in the unfortunate event you have provided a scammer with your bank account information, you should notify your bank immediately.
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Report Suspicious Activity Scams Or Fraud
If someone threatens to garnish your wages, contact your employer, or uses threatening, intimidating, or offensive language, report such actions to state and federal regulators.
Washington State residents only: If you are a victim of a collection scam or if you suspect illegal or fraudulent activity involving a financial product or service, please contact the Department of Financial Institutions at 1-877-RING-DFI , or online at www.dfi.wa.gov. You may also wish to contact the state of Washington Office of the Attorney General at www.atg.wa.gov.
If you live in another state, go to this webpage to find the regulator in your home state. .
All consumers, if you feel you have been the victim of a scam you might also with to contact the FTC at 1-877-FTC-HELP or online at www.ftc.gov or contact the Consumer Financial Protection Bureau 411-CFPB or online at www.consumerfinance.gov.
If you feel you have been the victim of a scam involving the internet you may also contact the Internet Crime Complaint Center online at www.ic3.gov.
Interim Measure Indicated Concerning Belgium
The ECHR has decided to indicate an interim measure in the case of Msallem and 147 Others v. Belgium.
The case concerns the applicants who have applied to the Belgian authorities for international protection and have not been assigned accommodation on account of the alleged saturation of the network for receiving asylum-seekers in Belgium. The Court decided to enjoin the Belgian State to comply with the orders made by the Brussels Labour Court in respect of each of the applicants and to provide them with accommodation and material assistance to meet their basic needs for the duration of the proceedings before the Court.
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Notice Of Proposed Assessment
The notice of proposed assessment lists the tax type, tax period, due date, and amount due. It includes an explanation for the billing with line-by-line clarification of the changes made .
Always review each element on the proposed assessment. The bill should be verified against your records, and any discrepancies should be addressed as quickly as possible by filing a protest or amended return with proper documentation to support your claim.
You may protest a proposed assessment from DOR by sending a written request and a copy of the bill to the department within 60 days of the bill date. The protest request letter should detail the reason for your protest and be signed and dated.
To protest only the penalty, use the same process. The protest letter should also include the specific reason for protesting the penalty only.
If you do not contact DOR by the due date, Indiana law requires DOR to advance the collection process. You waive your right to protest if you do not respond at the proposed assessment stage.
If you file a tax return and indicate a balance is owed, but don’t pay that amount, the collection process will begin with a demand notice.
Section 5 Judgment Follow
This transmits revised IRM 25.3.5, Litigation and Judgments, Judgment Follow-up.
Material Changes
IRM 25.3.5.1: Revised title and added content to comply with the Internal Management Documents System, Internal Revenue Manual internal control requirements.
IRM 25.3.5.1.1.1: Moved section, Judgments for Assessed or Unassessable Liabilities, from IRM 25.3.5.1 to IRM 25.3.5.1.1.1.
IRM 25.3.5.2: Updated for clarity.
IRM 25.3.5.3: Updated for clarity and to add references to eApproval.
IRM 25.3.5.4: Section structure revised to incorporate now deleted sections IRM 25.3.5.5, 6, 7, and 10, content updated for clarity, flow, and references to eApproval.
IRM 25.3.5.5, IRM 25.3.5.6, IRM 25.3.5.7, and IRM 25.3.5.10 deleted as sections and incorporated as subsections of or content within IRM 25.3.5.4.
Remaining IRM sections updated for references, content, structure, and clarity.
Editorial changes throughout to correct references.
Effect on Other Documents
Audience
Effective Date
25.3.5.1
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