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wage levy deductions were embezzled or, if they were, who
embezzled them.
We note that Mr. Jones stated in his letter that BSA
embezzled PWJ’s payroll taxes. On the other hand, Mr. Jones
claimed that separate payments were made by PWJ to BSA for
petitioner’s taxes. In addition, the purported payments were
made by Wen-Don Corporation, not by PWJ. The settlement officer
had suggested to petitioner that he contact his employer and
obtain copies of the checks (front and back) evidencing the wage
levy deductions so that they may be traced. Petitioner did not
seem too interested in doing so at that time. Only a limited
number (3) of separate checks for wage levy payments were put in
evidence at trial. These checks from Wen-Don Corporation, signed
by Mr. Jones, the former president of PWJ, do not match the so-
called PWJ records of wage levy deductions.
At trial, petitioner suggested that respondent should seek
recovery from BSA or PWJ for the wage levy deductions not paid
over to the IRS and that petitioner should be credited for such
deductions.
Clearly, respondent can take action to enforce the lien
under section 7403 where there is a refusal to pay any tax. We
have found the following provision significant. Section 6332
refers to the surrender of property subject to levy. It provides
that any amount (other than costs) recovered under this paragraph
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Last modified: May 25, 2011