- 4 -
and claimed an EIC of $2,404. Petitioners did not report the IRA
distribution.
Respondent determined that petitioners’ gross income should
be increased by the amount of the $10,452 IRA distribution. The
adjustment increased petitioners’ tax liability and reduced the
claimed EIC.
Discussion
1. Interest of Petitioner-Wife
As we understand, petitioners argue that Dean Witter should
not have honored the levy because petitioner-wife had not
consented to the forced distribution of the IRA account, and,
therefore, the distribution should be deemed void. The fact of
the matter is, Dean Witter did honor the levy, and, under the
circumstances, we are unsure where petitioners’ argument leads.
In all events, it appears from this record that the levy and
subsequent honoring thereof were correct.
Under section 6321, upon an assessment of tax, a lien arises
“in favor of the United States upon all property and rights to
property” belonging to the taxpayer. Respondent is authorized to
collect such tax “by levy upon all property and rights to
property” of the taxpayer, section 6331(a), and the person upon
who the levy is served “shall * * * surrender such property”,
section 6332(a). Upon the execution of a levy, the Internal
Revenue Service “acquires whatever rights the taxpayer * * *
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011