Bankruptcy Judge OKs IRS Pension Levy

During bankruptcies, an automatic stay prohibits creditors from taking collection actions while proceedings are ongoing. But a Wisconsin couple recently found that the stay was not an absolute thing. Enter the IRS.

In Pansier v. U.S., 2019 PTC 494 (E.D. Wis. 2019) a district court affirmed a bankruptcy court’s decision to lift the automatic stay. This lift let the IRS levy the debtor’s pension even though the bankruptcy case was still in motion. The reasoning from the bankruptcy court: The pension was exempt from regular creditors and was therefore still available to the IRS outside of the bankruptcy.

Take-away: The IRS has far more collection power than most creditors!

If you or someone you know has received a Notice of Intent to Levy or has some other federal or Florida state tax problem, please feel free to contact me at either (352) 317-5692 or email jim@taxrepgainesville.com.

Author: Jim Payne

Jim Payne, a Florida Certified Public Accountant (CPA) since 1976, offers candid insights on getting square with the IRS — with the least pain, and at the lowest cost — with (or without) the help of a tax representative. Mr. Payne is a former IRS agent and expert in business profitability, IRS audits, IRS payroll tax, and IRS non-filer issues. As a Tax Representative, his goal is clear: " I will speak on your behalf to all IRS agents, so you never have to, and I'll guide you in executing a strategy to resolve your IRS problem so you can get back to enjoying life."

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