Free Motion for Leave to File - District Court of California - California


File Size: 176.9 kB
Pages: 2
Date: June 22, 2007
File Format: PDF
State: California
Category: District Court of California
Author: unknown
Word Count: 731 Words, 4,551 Characters
Page Size: 611 x 792 pts
URL

https://www.findforms.com/pdf_files/cand/193019/12-9.pdf

Download Motion for Leave to File - District Court of California ( 176.9 kB)


Preview Motion for Leave to File - District Court of California
Case 5:07-cv-03141-JF Document 12-9 Filed 06/22/2007 Page1 0f2
EXHIBIT 6

8 if · f 2
Case 5:07-cv—03141-JF _ Document .12-9 Filed 06/22/2007 Page 2 0 f
Internal Revenue Manual - 25.18.4 Collection of Taxes in Community Property States Page 1 o 7
(gi'} nw r , - , ,.. · .4. N .··» 4• ei ·¤. --· '
t`%§i}t 1. HI€t§`1`?t.&tt R.i:\=· ·.;~:1T°t.Lt.t;; 5;;. it .1 5. tx
Utaittttitriifitsitcs Ijiffiéitfftttftlt ut tic ”Ql`ri;r-2:+t.t;§,·
T Part 25.‘Spe¢ial Topics T T it it ` `" 2 " DP S PPPP D it l` M 8 8 SC if Cl ` ’2 N
Chapter 18. Community Property
Section 4. Collection of Taxes in Community Property States

25.18.4 Collection of Taxes in Community Property States
• 25.18.4.1 CQ¤I€Xt.Qt Collectio.n.ls.s.u.e.s.
• 25.18.4.2 Process for Determining Col_lectiori__Optio_ns_
• 25.18.4.3 Management and..C.¤ntrol..a.nsl...Qo.l.l.ection
• 25.18.4.4 Premarital v. Post-l\/larital Qtziigéttms
• 25.18.4.5 Collecting Premarital.Liab.i.li.tie.s
• 25.18.4.6 Collecting Post-Marital l.ia_l9_i.lt1.i€S
• 25.18.4.7 Effect of Spouse’s Death on Collection
• 25.18.4.8 Effect of Dissolution ofthe Community Property Regime on Collection
• 25.18.4.9 Effect of Marital Ag,reement$..Qn _CQ.|.l.@€1tiQl1
• 25.18.4.10 Effect of Community Property on__Offers ln,__C_ompromi_se
• 25.18.4.11 Community Property and BQ.nk_tUl?I¢Y
25.18.4.1 (02-15-2005)
Context of Collection Issues
1. Where spouses are jointly and severally liable for federal taxes on account of having tiled a joint
federal income tax return, the taxes may be collected from the separate property of either spouse or
any of their community property. Community property collection issues rarely arise in this context.
Community property collection issues typically arise where only one spouse owes a tax liability. This
can come up in many contexts, but the most frequent examples are where spouses do not tile
returns, where they tile separate returns, where one spouse is given innocent spouse relief, or where
one spouse incurs employment taxes or is assessed a trust fund recovery penalty. The issue in these
contexts is what assets are available to satisfy the obligations.
2. lf a taxpayer neglects or refuses to pay assessed taxes after notice and demand, a federal tax lien
arises against the taxpayer. IRC § 6321. The lien attaches to all of the taxpayer's property and rights
to property. ld. Under federal law, the Service steps into the shoes of the taxpayer. United States v.
Rodgers, 461 U.S. 677 (1983). State law determines a taxpayer's property and rights to property. g `
Because a federal tax lien against one spouse (but not the other spouse) attaches to "all of the
taxpayer's property and rights to property," in a community property state the lien would attach to the
liable spouse's one-half ownership interest in all items of community property. This gives the Sen/ice
a collection right against this property. Thus, for example, if a husband incurs a separate tax liability,
a lien would attach to halt of the wife’s wages, which are community property. This could not happen
in a state that does not have community property.
3. Under the laws of all community property states, under certain circumstances a private creditor has
the right to collect a debt from all or part of both spouses’ interests in community property. The
Senxice can also rely on these state law remedies in collecting taxes. The Sen/ice's rights as a
creditor under federal law may be supplemented by state law remedies, and the Service may satisfy
delinquent tax obligations from more than one-half of community property. See lt/Iegaris v. United
States, 884 F.2d 832 (5th Cir. 1989). Thus, in some states a levy for the husband's separate tax
liability would attach to all of the wife’s wages, or a levy on the husband's wages for the same liability
would attach to all ofthe husband’s wages, even though the wife has a half interest in them.
25.18.4.2 (02-15-2005)
Process for Determining Collection Options
1. ln the community property states, a federal tax lien will always attach to all of a liable spouse's
1'ctp://inn/i1w.irs.gov/irm/pa rt25/ch14s04.html m; H -, me

Case 5:07-cv-03141-JF

Document 12-9

Filed 06/22/2007

Page 1 of 2

Case 5:07-cv-03141-JF

Document 12-9

Filed 06/22/2007

Page 2 of 2